Durable Goods Orders Exceed Forecast

The orders for durable goods (goods that last three years or more) for July were released at 8:30 AM ET, and they showed a surprisingly strong gain of 1.3% that vastly exceeded the 0% - 0.2% gain that economists had been forecasting. This matched the same 1.3% rise in orders for durable goods in June.

As recently released earnings numbers from U.S based multinational companies have already shown, exports which continue to rise, as a result of the falling dollar (recent gains against other currencies not withstanding) are helping to combat the economic weakness we are experiencing within our borders.

Capital spending, which is spending by businesses for durable goods, rose 2.6%, against a forecasted decline for the month of 0.1%

With orders for transport related goods such as aircrafts taken out, we still saw a rise of 0.7%, compared to the decline of 0.5% that economists were forecasting.

The numbers are helping stock futures to rebound a bit although we seem to be still headed for a lower open. As we stated in an earlier post today, we might see active oscillations between negative and positive territories today as countervailing forces act upon stocks today.

tags: durable goods orders  economic calendar