INSTANT VIEW: Confidence hits a nine-month high

NEW YORK (Reuters) - The Reuters/University of Michigan Surveys of Consumers' preliminary June consumer sentiment index rose to 69.0, a nine-month high, from May's final reading of 68.7, according to a report released on Friday.

COMMENTS:

BILL SCHLUTZ, CHIEF INVESTMENT OFFICER, MCQUEEN BALL &

ASSOCIATES, BETHLEHEM, PENNSYLVANIA:

"It was close to expectations but maybe a little bit below what forecasts were, but what we're really seeing is bonds looking for any sign that the consumer is really retrenching.

"In the recent period where interest rates backed upon the expectation of higher inflation and more supply in the long end, and we do see a moderation in consumer spending here, maybe that puts less pressure on interest rates, and maybe we don't see as much of a consumer rebound as people were expecting toward the long end of the yield curve. So it throws a dose of reality that while this is recovery, and it's better, it may not be the jumping-on point to a stronger V-shaped recovery going forward."

JOE MANIMBO, CURRENCY TRADER, TRAVELEX GLOBAL BUSINESS PAYMENTS, WASHINGTON:

"It was certainly an improvement from the month before. The current conditions (have) perked up, but I think that was offset by the expectations going forward, which had fallen. But still, it was good enough for a nine-month high (the overall index), so that's likely to see the dollar extend its gains."

TOM PORCELLI, SENIOR ECONOMIST, RBC CAPITAL MARKETS, NEW YORK

"Consumers are feeling better in the here and now, and hopefully that will result in more spending down the road. But consumers still face a lot of headwinds like the jobs market and rising gasoline and mortgage rates... It's hard to see meaningful gains in consumer spending when you still have significant job losses.

HUGH JOHNSON, CHIEF INVESTMENT OFFICER, JOHNSON ILLINGTON ADVISORS, ALBANY, N.Y.:

"It's good news but not great news. It says that consumer sentiment or confidence is continuing to improve and that we're headed for a recovery in the economy. There is no significant backslide in these numbers, which is good news. So the basic message is that sentiment is improving and that's good news. We'd like it to have been better but it wasn't, so be it. This is not going to be a big market mover. It's an important set of numbers but it won't move the markets."

STEVE GOLDMAN, MARKET STRATEGIST, WEEDEN & CO., GREENWICH, CONNECTICUT:

"This tends to be a lagging indicator, it lags behind what stock prices have done. I don't think it'll be a market mover, though on the surface it was slightly below expectations.

"For a market that is coming off a sell-off, we're seeing some modest pullback, with the themes being the commodities trade and crude oil strength coming off. Everything that has been strong is seeing some profit taking, and that includes the market itself."

MARKET REACTION: STOCKS: U.S. stock indexes slipped on the news. BONDS: U.S. Treasury debt prices rose slightly. DOLLAR: U.S. dollar was flat.