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Stocks are staging a big rally .The big news of the morning was the January durable goods report. The headline orders number plunged by 5.2 per cent, which was worse than expectations.
But the headline number tends to be noisy due to volatile aircraft orders.
Core capex, which is nondefense order excluding aircraft, surged 6.3 per cent. Economist were looking for no growth here.
“The standout within the report is rising demand for capital goods seen as a proxy for future business investment in the economy,” wrote Miller Tabak Chief Economic Strategist Andrew Wilkinson in a note following the release. “The report confirms the improving health of the manufacturing sector, which we continue to feel is helping fuel demand across the remainder of the economy as rising business confidence translates into growth in investment activity.”
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