Analyst Watch: How to Play Consumer Confidence

Two days of little movement for U.S. stocks is likely to end Tuesday, with renewed worries over euro zone debt pushing overseas markets lower, as well as U.S. stock index futures.

Consumer Confidence figures are due at 10 a.m., ET. If they continue to disappoint, how should you invest? And if they hold steady?

Guests on today's Squawk on the Street are watching just that before the opening bell:

If Consumer Confidence Disappoints

Rod Smyth, chief investment strategist with Riverfront Investment Group, says in this environment, consumer confidence is unlikely to improve much and may even deteriorate. As such, he says developing economies will continue to enjoy much faster growth than the US and Europe.

He likes:

Spider S&P Emerging Market Small Cap ETF as a way to play emerging market growth;

PowerShares DB US Dollar Index as a way to play a stronger dollar;

and more defensive plays in high-quality US stocks like Vanguard Dividend Appreciation ETF.

He also recommends shorting the US consumer sector and European ETFs.

If Consumer Confidence Holds Steady

Sandy Lincoln, intestment strategist with M&I Investment Management
says consumer confidence will hold up, and when it does, quality takes the helm for investments.

He likes:

Nabors Industries, the largest operator of land-based drilling rigs. It has broad geographic diversity, cheaper valuation on forward earnings and improved pricing outlook.

HMS Holdings because of its strong niche in health care cost containment space with clients like Medicare, VA, Medicaid and selected state health programs.

See more of what these and other analysts and money managers have to say, and get the latest financial news. Watch Squawk on the Street every weekday morning starting at 9 a.m. ET.


Your Daily Dashboard

Pre-Markets Data | First Trade For Tuesday

Analyst Interviews | CNBC Stock Blog | Dow 30 Stocks—In Real Time


Disclosure: Disclosure information was not immediately available.



Contact Squawk on the Street

  • Carl Quintanilla

    Carl Quintanilla is an Emmy-winning reporter and co-anchor of CNBC's "Squawk on the Street," broadcast live from the NYSE.

  • Simon Hobbs

    Simon Hobbs co-anchors the 10 a.m. hour of CNBC's "Squawk on the Street" live from the New York Stock Exchange.

  • Jim Cramer

    Jim Cramer is host of CNBC's "Mad Money" and co-anchor of the 9 a.m. ET hour of CNBC's "Squawk on the Street."

  • David Faber

    “Squawk on the Street” Co-Anchor

  • Rick Santelli

    Rick Santelli joined CNBC Business News as an on-air editor in 1999, reporting live from the floor of the Chicago Board of Trade.