New Orders for Durable Goods Rose 4.2% in July; Machinery May No Longer Be Key Indicator (CAT) (DE)
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Price: $86.95 -0.86%
Overall Analyst Rating:
BUY (= Flat)
Dividend Yield: 2.6%
Revenue Growth %: -17.4%
Overall Analyst Rating:
BUY (= Flat)
Dividend Yield: 2.6%
Revenue Growth %: -17.4%
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According to new data from the U.S. Dept. of Commerce Census Bureau, new orders for durable goods rose 4.2 percent to $230.7 billion. Excluding transportation, orders fell 0.4 percent.
Data compares with expectations for an increase of 0.5 percent, and a decrease of 0.4 percent excluding transportation.
The Commerce Department noted that July was the third month of increases in durable orders, following a 1.6 percent jump in June.
Transportation equipment, up five of the last six months, had the largest increase, $9.9 billion or 14.1 percent to $80.4 billion.
Bloomberg, today, hinted that the imminent rise in U.S. taxes as well as continued spending cuts may indicate that goods from industrial giants like Caterpillar (NYSE: CAT), Joy Global (NYSE: JOY), and Deere (NYSE: DE) are no longer key indicators. Indeed, new orders for machinery fell 3.6 percent.
Conversely, the auto segment continued seeing upside. Data had new orders for motor vehicles and parts up nearly 13 percent in July. GM (NYSE: GM) and Ford (NYSE: F) are lower on the session, along with many suppliers like Lear (NYSE: LEA) and TRW Automotive (NYSE: TRW).
Nondefense aircraft orders rose a staggering 53.9 percent, a good sign for names like Boeing (NYSE: BA) and Spirit AeroSystems (NYSE: SPR). Both are higher on the session Friday. For Boeing, the report comes following news Thursday that Qantas cancelled an order for 35 787-9 Dreamliners.
Moving forward, traders will be keeping an eye on the FOMC, which hinted at further easing in the minutes of its late July meeting. More stimulus could boost spending as lending becomes cheaper. Exports might also increase as the dollar devalues versus foreign counterparts.
U.S. markets are lower Friday; the DJIA is off 14 points, S&P 500 down 3 points, and Nasdaq down 7 points.
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Data compares with expectations for an increase of 0.5 percent, and a decrease of 0.4 percent excluding transportation.
The Commerce Department noted that July was the third month of increases in durable orders, following a 1.6 percent jump in June.
Transportation equipment, up five of the last six months, had the largest increase, $9.9 billion or 14.1 percent to $80.4 billion.
Bloomberg, today, hinted that the imminent rise in U.S. taxes as well as continued spending cuts may indicate that goods from industrial giants like Caterpillar (NYSE: CAT), Joy Global (NYSE: JOY), and Deere (NYSE: DE) are no longer key indicators. Indeed, new orders for machinery fell 3.6 percent.
Conversely, the auto segment continued seeing upside. Data had new orders for motor vehicles and parts up nearly 13 percent in July. GM (NYSE: GM) and Ford (NYSE: F) are lower on the session, along with many suppliers like Lear (NYSE: LEA) and TRW Automotive (NYSE: TRW).
Nondefense aircraft orders rose a staggering 53.9 percent, a good sign for names like Boeing (NYSE: BA) and Spirit AeroSystems (NYSE: SPR). Both are higher on the session Friday. For Boeing, the report comes following news Thursday that Qantas cancelled an order for 35 787-9 Dreamliners.
Moving forward, traders will be keeping an eye on the FOMC, which hinted at further easing in the minutes of its late July meeting. More stimulus could boost spending as lending becomes cheaper. Exports might also increase as the dollar devalues versus foreign counterparts.
U.S. markets are lower Friday; the DJIA is off 14 points, S&P 500 down 3 points, and Nasdaq down 7 points.
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