US Durable Goods Orders + 6.5% in June

US Durable Goods Orders + 6.5% in June

US Durable Goods Orders + 6.5% in June

$DIA, $SPY, $QQQ, $VXX

Orders for long-lasting US$, aka Durable Goods, factory goods posted the biggest gainer in almost 3 years last month, pulled up by a surge in demand for civilian aircraft.

The Commerce Department said Thursday that orders for durable goods, which are meant to last at least 3 years, rose 6.5% in June, reversing 2 straight monthly falls. The June increase was the biggest since July 2014.

Spending on durable goods accounts for a small part of American economic output. But changes in durable goods orders often signal where the economy is headed.

So forecasters, analysts and investors watch the report closely.

The uptick in orders is good news for the US economy and for American manufacturers.

The bulk of the increase came from a 131.2% spike in orders for civilian aircraft, a category that is volatile.

Excluding orders transportation equipment, which rose 19% overall, durable goods orders edged up just 0.2% last month.

Moreover, a number that is seen as a harbinger of future business investment, orders for capital goods, excluding military equipment and aircraft, slipped 0.1% in June.

US industry has rebounded from a slump in late Y 2015 and early Y 2016, which was caused by cutbacks in the energy business.

The Institute for Supply Management (ISM), a trade group of purchasing managers, said that its manufacturing index rose last month to the highest level since August 2014.

Thursday, the US major stock market indexes finished at: DJIA +85.54 at 21796.55, NAS Comp -40.56 at 6382.15, S&P 500 -2.41 at 2475.38

Volume: Trade on the NYSE came in at: 927-M/shares exchanged hands

  • NAS Comp +18.6% YTD
  • S&P 500 +10.6% YTD
  • DJIA +10.3% YTD
  • Russell 2000 +5.6% YTD
HeffX-LTN Analysis for DIA: Overall Short Intermediate Long
Very Bullish (0.51) Very Bullish (0.67) Bullish (0.35) Very Bullish (0.50)
HeffX-LTN Analysis for SPY: Overall Short Intermediate Long
Bullish (0.27) Bullish (0.32) Neutral (0.23) Bullish (0.25)
HeffX-LTN Analysis for QQQ: Overall Short Intermediate Long
Neutral (0.13) Neutral (0.16) Neutral (0.17) Neutral (0.06)
HeffX-LTN Analysis for VXX: Overall Short Intermediate Long
Bearish (-0.34) Neutral (-0.18) Bearish (-0.40) Bearish (-0.46)

Stay tuned…

 

The following two tabs change content below.

Paul Ebeling

Paul A. Ebeling, polymath, excels in diverse fields of knowledge. Pattern Recognition Analyst in Equities, Commodities and Foreign Exchange and author of “The Red Roadmaster’s Technical Report” on the US Major Market Indices™, a highly regarded, weekly financial market letter, he is also a philosopher, issuing insights on a wide range of subjects to a following of over 250,000 cohorts. An international audience of opinion makers, business leaders, and global organizations recognizes Ebeling as an expert.

You must be logged in to post comments :  
CONNECT WITH