Consumer sentiment continued to recover in early OctoberOctober 17, 2020
Consumer sentiment continued to improve in the initial release from the University of Michigan for October. The index remains well-below its pre-virus position, but continued to move in the right direction.
Household Finances: Steady as She Goes
The share of consumers reporting finances were better than a year-ago slipped modestly. But, overall assessments of finances were largely unchanged. Perception of finances will be a key indication of consumption as households grapple with decreased stimulus and increasingly rely on savings.
Perception of buying conditions subsided, as the share seeing now as a good time to buy a major appliance or vehicle fell.
Buying Conditions Wobble, but Housing A Bright Spot
The decline in appliance/vehicle buying conditions is in contrast to the sizeable gains in the separately released September retail sales data for autos and home furnishings this morning, but perhaps is an indication of the coming slowdown in goods spend.
The measure of a good time to buy a home improved to 70, as the housing market continues to be a bright spot. Mortgage rates slipped to an all-time low again this week.
Download The Full Economic Indicators
Recently, the stock market has experienced high levels of volatility. If you are thinking about participating in fast moving markets, please take the time to read the information below. Wells Fargo Investments, LLC will not be restricting trading on fast moving securities, but you should understand that there can be significant additional risks to trading in a fast market. We’ve tried to outline the issues so you can better understand the potential risks.
If you’re unsure about the risks of a fast market and how they may affect a particular trade you’ve considering, you may want to place your trade through a phone agent at 1-800-TRADERS. The agent can explain the difference between market and limit orders and answer any questions you may have about trading in volatile markets.
Higher Margin Maintenance Requirements on Volatile Issues
The wide swings in intra-day trading have also necessitated higher margin maintenance requirements for certain stocks, specifically Internet, e-commerce and high-tech issues. Due to their high volatility, some of these stocks will have an initial and a maintenance requirement of up to 70%. Stocks are added to this list daily based on market conditions. Please call 1-800-TRADERS to check whether a particular stock has a higher margin maintenance requirement.
Please note: this higher margin requirement applies to both new purchases and current holdings. A change in the margin requirement for a current holding may result in a margin maintenance call on your account.
A fast market is characterized by heavy trading and highly volatile prices. These markets are often the result of an imbalance of trade orders, for example: all “buys” and…