) -- Durable goods order data released Wednesday showed
even as a veteran airline analyst said that while Wall Street is talking about a recession, "Main Street
is not yet listening."
Durable goods orders rose 4% in July as compared to June, the Commerce Department reported. Orders of transportation equipment rose 14.6%, fueled by a 43.4% increase in commercial aircraft orders, reflecting
, the nation's largest exporter.
Meanwhile, orders for autos rose 11.5%.
Taking out transportation, durable goods were only up 0.7% in July, compared to a 0.6% increase in June.
reflect a continued strong outlook in the airline industry, which is also being helped by declining fuel prices. In a recent report, Bank of America/Merrill Lynch analyst Glenn Engel wrote that while "Wall Street
is talking recession, Main Street
is not yet listening.
"Despite concerns that recent stock market declines will induce a recession, airline bookings in the past two months (averaging up 4% year-over-year) have improved from the prior two months (averaging 1%-2% yoy)," Engel wrote. "Even during the week of the market's greatest volatility, bookings were up a resilient 2.3% yoy."
With both capacity and oil prices declining, Engel said, earnings declines should narrow following the third quarter. He noted that airline share prices seem to have already priced in a recession.
to buy from neutral and
to neutral from underperform.
Engel's top picks, however, are
haven't seen declines in August auto sales. "At this point, we haven't observed any slowdown in the pace of sales in August resulting from the
debt ceiling debate in Washington or the stock market volatility," said
analyst George Pipas, in a recent interview.
, a spokesman for Buick said Buick August sales are strong, as they have been for most of the past two years.
-- Written by Ted Reed in Charlotte, N.C.
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