October Durable Goods Surprise to the Upside
ThinkstockThe Commerce Department has reported that durable goods were effectively unchanged in the month of October at a seasonally adjusted $216.95 billion. Dow Jones had a consensus expectation of -1.2% and Bloomberg had an estimate of -0.8%. On an ex-Transportation…
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The Commerce Department has reported that durable goods were effectively unchanged in the month of October at a seasonally adjusted $216.95 billion. Dow Jones had a consensus expectation of -1.2% and Bloomberg had an estimate of -0.8%. On an ex-Transportation basis, this was up by 1.5%, above the Bloomberg consensus of -0.4%.
It is interesting that the Commerce Department showed that increased demand for machinery offset a decline in auto demand and airplanes. We were expecting this number also to have been hampered a bit by the hurricane. Orders for nondefense capital goods orders outside of aircraft rose by 1.7%, and that was said to be a high since before summer. Motor vehicle demand was down by 1.6% in October. Civilian aircraft is highly volatile, but that fell by some 5.8%. Defense orders were lower by 7.1%, but that followed huge gains before as orders were coming in ahead of the expected defense spending cuts.
Futures remain in negative territory this morning: Dow futures are down 5 points and S&P 500 futures are down by 0.2 points.
JON C. OGG
Contact [email protected] for any questions or corrections.
Jon Ogg has been a financial news analyst since 1997. Mr. Ogg set up one of the first audio squawk box services for traders called TTN, which he sold in 2003. He has previously worked as a licensed broker to some of the top U.S. and E.U. financial institutions, managed capital, and has raised private capital at the seed and venture stage. He has lived in Copenhagen, Denmark, as well as New York and Chicago, and he now lives in Houston, Texas. Jon received a Bachelor of Business Administration in finance at University of Houston in 1992. www.247wallst.com.
