Spike In July Durable Goods Trumps Hiccup in Housing for Stocks

The unexpected 22.6% rise in durable goods orders in July shows an upward trajectory to the economy and is bullish for stocks.
Author:
Publish date:

The unexpected 22.6% rise in durable goods orders in July shows an upward trajectory to the economy and is bullish for stocks, said Brian Jacobsen, Chief Portfolio Strategist at Wells Fargo Fund Management Group. Meanwhile, he said the month-over-month decline in housing prices is not as important as the capital goods numbers and it also showed fewer distressed sales. Jacobsen said the better than expected consumer confidence data ties nicely into the increase in stock valuations, especially the improvements in the present situation index. Finally, he said stocks should move higher on today's economic data but the easy money has already been made.