Headline: Durable goods orders down 0.7% month-over-month in October, better than expectations for a 1% fall.Ex-transport orders were up 0.7% against estimates for no change.
Markets don’t react to headline figures because they are volatile, but capital goods orders, which excludes defence, were down 1.8%.
Meanwhile, durable goods orders for September were revised down to show a 1.5% decline, against initial estimates of a 0.8% fall.
U.S. futures have been lower today and with jobless claims and personal income and outlays out, markets continue to stay lower.
Expectations: Durable goods orders are expected to decline 1% month-over-month, and reflect no change on an annual basis.
Analysis: Durable goods ordered fell 0.8% last month but ex-transport grew 1.7%. Investors look to to durable goods numbers because they show new orders placed with domestic manufacturers and indicate demand for everything from household goods like refrigerators, to cars, and industrial machinery. Increased expenditures on investment goods also form a major component of the economy.