Stocks Set To Jump After Strong Durable Goods Data

green shoots grass

Here’s something that on quick inspection looks like green shoots.

WSJ: Demand for expensive goods made a strong, surprising increase in May, the third climb in four months, while a gauge of capital spending surged by the most in nearly five years.

Manufacturers’ orders for durable goods increased by 1.8% last month to a seasonally adjusted $163.92 billion, the Commerce Department said Wednesday.

Wall Street expected a big decrease. Economists surveyed by Dow Jones Newswires had projected orders in May would fall 0.8%.

Orders for nondefense capital goods excluding aircraft rose by 4.8%, after decreasing 2.9% in April. It was the largest increase since 8.2% in September 2004.

The futures are up solidly, though not enormously and it still looks like the S&P will start on the underside of 900.

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