LIVE MARKETS-Individual investor pessimism pulls back - AAII

Welcome to the home for real-time coverage of markets brought to you by Reuters reporters. You can share your thoughts with us at markets.research@thomsonreuters.com

INDIVIDUAL INVESTOR PESSIMISM PULLS BACK - AAII

Individual investor pessimism over the short-term outlook for U.S. stocks decreased in the latest American Association of Individual Investors (AAII) Sentiment Survey. With this, optimism edged up, and neutral sentiment increased.

Meanwhile, almost half of investors surveyed said that the "economy and/or inflation" is the factor that is most influencing their six-month outlook for stocks.

AAII reported that bearish sentiment, or expectations that stock prices will fall over the next six months, declined 6.8 percentage points to 40.5%. Bearish sentiment is above its historical average of 31.0% for the 12th time in 14 weeks.

Bullish sentiment, or expectations that stock prices will rise over the next six months, added 0.8 percentage points to 29.2%. Bullish sentiment is below its historical average of 37.5% for the sixth time in eight weeks.

Neutral sentiment, or expectations that stock prices will stay essentially unchanged over the next six months, rose 6.0 percentage points to 30.3%. Neutral sentiment is below its historical average of 31.5% for the 31st time in 33 weeks.

With these changes, the bull-bear spread gained 7.6 percentage points to –11.3% from –18.9% last week. The bull-bear spread is below its historical average of 6.5% for the seventh time in nine weeks.

In this week's special question AAII asked its members which factor is most influencing their six-month outlook for stocks.

Here is AAII's graphic showing how they responded:

(Terence Gabriel)

FOR FRIDAY'S EARLIER LIVE MARKETS POSTS:

WITH SO MUCH DOUBT, A RISK-OFF STANCE MAY HELP - CLICK HERE

CHINA TECH REBOUND NOT QUITE ENOUGH TO CHASE THE BEARS AWAY - CLICK HERE

THE COMING STORM: FLASH PMI, HOME SALES, UMICH - CLICK HERE

U.S. STOCKS DIP, WITH TRANSPORTS DOWN MORE THAN 2% - CLICK HERE

BENCHMARK TREASURY YIELD: STILL STUCK IN THE WEEDS - CLICK HERE

"CELTIC TIGER" LEAPS TO NEW RECORD HIGH - CLICK HERE

DON'T READ TOO MUCH INTO UK RETAIL SALES, ECONOMISTS SAY - CLICK HERE

BUNDS PULLED IN OPPOSITE DIRECTIONS - CLICK HERE

TARIFF RISK UNDERPRICED, AGAIN - CLICK HERE

STOXX 600 FIRMER AS CHEMICALS AND BEVERAGES LIFT INDEX - CLICK HERE

EUROPE BEFORE THE BELL: MODEST OPEN AWAITS, STOXX TO STAY AT RECORD - CLICK HERE

PMIS IN THE SPOTLIGHT AHEAD OF WEEKEND GERMAN ELECTIONS - CLICK HERE