Sorry!! The article you are trying to read is not available now.
Thank you very much;
you're only a step away from
downloading your reports.

Durable Goods Orders Increase on Uptick in Aircraft Orders


Today's financial recap and tomorrow's financial outlook.

Today was another day that saw some minor weakness in the morning only to have buyers show up in the afternoon to finish the day flat to slightly higher. In the morning, US durable goods orders showed a 4.6% increase month-to-month in December, better than the 2.0% economist estimate. The large move was due to a substantial increase in aircraft orders, while the rest of the report showed minor improvement.

The pending home sales index was released later in the morning, showing a large decline in December from November. The average economist estimate forecast no change month-to-month, but the index of home sales saw a decline of 4.3% and the annual rate slowing to 4.9% from 8.9%. The slowdown was not centralized to the Northeast, so any ancillary effects from Hurricane Sandy can be dismissed. Lastly, the regional manufacturing survey from the Dallas Fed ticked up to 5.5 in January, up from the lower revised 2.5 in December. Economists were expecting a reading of 4.0. The gain was led by a pickup in new orders, but the employment sub index declined.

The FTC announced today that it was taking direct seller Fortune Hi-Tech Marketing into receivership after allegations of an illegal pyramid scheme have manifested over the past six months. Because other direct sellers like Herbalife (HLF) and Nu Skin (NUS) have similar business models, both of these stocks saw losses of more than 6% in today's trading.

Pre-market, Caterpillar (CAT) reported earnings for the full year 2012 and released its forecast for 2013. For the current quarter, Caterpillar missed EPS at $1.46 after one-time items versus $1.70 estimates; revenues were relatively inline at $16.08 billion versus $16.06 billion estimates. Forward guidance was also on the negative side; the company forecast 2013 EPS of $8.00 versus $8.54 estimates and revenues of $64 billion versus $65.22 billion estimates. Nonetheless, the stock was up 2% in today's trading.

Tomorrow's Financial Outlook

Tomorrow morning, the S&P will release its joint home price index with Case-Shiller with economists forecasting a 0.70% monthly gain in November, up from 0.66% the prior month. Later in the morning, the Conference Board will release its Consumer Confidence Index for January, which is expected to continue to tick down to 64.0 this month from 65.1 in December. It's worth noting that the Bloomberg Consumer Comfort Index has shown three straight weeks of declines, so it is more likely that Conference Board's index will miss to the downside.

Globally, the GfK Institute will release its forward consumer confidence index for Germany in February, which is expected to tick up slightly to 5.7 from 5.6.

On the earnings front, Corning (GLW), Harley-Davidson (HOG), Pfizer (PFE), DR Horton (DHI), AK Steel (AKS), Ford (F), Amazon (AMZN), Broadcom (BRCM), US Steel (X), and JetBlue (JBLU) are all set to report tomorrow.

Twitter: @Minyanville

Follow the markets all day every day with a FREE 14 day trial to Buzz & Banter. Over 30 professional traders share their ideas in real-time. Learn more.
< Previous
  • 1
Next >
No positions in stocks mentioned.

The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.

Copyright 2011 Minyanville Media, Inc. All Rights Reserved.

Featured Videos