Ahead Of The Bell: US Durable Goods
WASHINGTON (AP) â¿¿ Orders for long-lasting U.S. manufactured goods likely increased in September, reflecting a rebound in volatile commercial aircraft demand and a jump in retail spending.
Economists expect orders for durable goods rose 7 percent in September, according to a survey by FactSet. That would follow a 13.2 percent decline in August, which was largely because of a steep drop in aircraft orders.
The Commerce Department will release the report at 8:30 a.m. EDT Thursday.
Durable goods are products expected to last at least three years. Orders can fluctuate sharply from month to month.Orders are sharply lower this year, which has weakened manufacturing and slowed economic growth. High unemployment and low pay have kept consumers from spending. Businesses have held back on investing in machinery and equipment. And slower global growth has dampened demand for U.S. exports. The August report contained a promising sign. Orders that reflect business investment plans rose for the first time since May. Americans also boosted their spending at retail businesses in September, buying more cars, appliances and furniture. Stronger consumer spending could help offset declining demand from overseas. Still, economists are concerned that business investment could falter further if Congress doesn't reach an agreement to avert steep tax hikes and government spending cuts scheduled to take effect in January. And Europe's troubles could worsen. Business orders for core capital goods, the proxy for business investment, are up a modest 2.3 percent from January through August, compared to the same period a year ago. Even with the August decline in overall orders, demand for durable goods was still 33.5 percent higher than the recession low hit in April 2009. And there is some indication that U.S. factories may be emerging from their weak stretch. A closely watched survey from the Institute for Supply Management, said manufacturing grew in September for the first time in four months. It was buoyed by a jump in new orders and stronger hiring.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV