Consumer confidence rises, but so do oil prices

Good day for: Confidence, as the national mood is brightening. Consumer confidence rose this month to its highest level since September. The Reuters/University of Michigan final index of consumer sentiment climbed to 68.7 -- a bigger jump than expected given a worse-than-expected business slump -- from 65.1 in April. "The worst of the recession has passed," said Nomura Securities chief economist David Resler, "but it will take some time before we will see anything close to normal conditions." (Bloomberg)

Bad day for: Overconfidence, as oil prices hit a six-month high above $66 a barrel. If the sharp rise from late 2008 lows near $30 a barrel continues, the recent rebound in consumer confidence could be reversed. That's because oil price hikes translate into higher prices at gas pumps -- a sure way to dampen the mood of consumers. (Yahoo Finance)

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