Consumer Sentiment Highest Since January 2008 (SPX, JCG, TIF)

The final reading of the June University of Michigan Consumer Sentiment Index was revised up to 76.0 from a preliminary reading of 75.5. This revision beat the consensus estimate. The positive revision comes as a surprise given that the labor and equity markets have remained flat the past few weeks. Since mid-November, the initial claims level has remained range-bound between 450,000 and 500,000 claimants without any sign of downward relief. The S&P 500 (SPX) is roughly the same at it was in late May. The current economic conditions index was revised up from 82.9 to 85.6 and is now at its highest point since January 2008, one month after the recession began. Strong consumer sentiment readings usually bode well for consumer-related stocks such as J. Crew JCG and Tiffany & Co. TIF.