This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Durable Goods Orders Drop 1% in May

WASHINGTON (MNI) -- The latest U.S. durables and Q1 GDP reports show probably temporary declines that should be ignored for analysis purposes in an otherwise stable economy.

May durable goods orders posted -1.0% in their first drop since January. Ex-transportation orders posted -0.1%, and ex defense +0.6%. These moves do not appear to be the start of a trend lower, but rather the usual noise in this data set.

Boeing Corp. reported 99 new orders for commercial aircraft in May, after 70 in April. But seasonal adjustment in the national data turned a nearly 36% unadjusted gain for Boeing and its rivals into -4% for overall nondefense aircraft orders.

Motor vehicles and parts had a 2.1% rebound from a drop. That was not enough to lift overall transportation orders, which posted -3.0%.

Only primary metals at +1.9% were strong in the major durables areas. Computers posted -1.7% and electronics -3.1%. These were all soft but coming off two months of good gains.

Nondefense capital goods shipments were down 0.7%, suggesting soft capital spending.

In a separate report, Q1 GDP was revised down a massive 1.9 points to -2.9%, for its biggest loss since Q1:2009. Needless to say, this was worse than expected at over five times the usual revision.

The consumption component was largely responsible for the estimating error. Healthcare services, where new services survey data replaced Medicaid enrollments related to the start of Obamacare, accounted for 1.17 point of the revision.

Exports also were moved lower, but this data stemmed in part from annual revisions and modifications in the international accounts.

Annual revisions to GDP are due July 30 and again could alter this outlook. Also, Q2 GDP should bounce back after the harsh winter.

Corporate profits from current production posted -$198.3 billion, reflecting depreciation (bonus depreciation expired but did not affect CPCP). New information in the sectoral breakdown shows financial and nondurables (food and energy) losses, as well as losses in manufacturing.

GDP prices were +1.3% in Q1, in the only part of the output report that was little changed.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG
AAPL $130.28 0.00%
FB $81.53 0.00%
GOOG $565.06 0.00%
TSLA $218.42 0.00%
YHOO $44.52 0.00%

Markets

DOW 18,080.14 +21.45 0.12%
S&P 500 2,117.69 +4.76 0.23%
NASDAQ 5,092.0850 +36.0220 0.71%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs