According to a recent AP report, consumer confidence fell to 46.6 in July from a reading of 49.3 in June. It is the second consecutive month of declines in confidence. A reading of 90 would indicate a "healthy" outlook on the economy.
The recent decline in confidence appears to be reflected in the 2Q GDP report which showed that consumer spending fell by -1.2%, much more than expected.
Additionally, even over the past three weeks, mortgage purchase applications have remained at depressed levels despite record housing affordability.
Mark Vitner, a senior economist at Wells Fargo, doesn't expect to see a return to a 90 reading of consumer confidence until 2011 or 2012.
While Wall St. can celebrate better than expected "earnings", the housing market and job market continue to put downward pressure on consumer confidence and ultimately spending.