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Headline Writers Somehow Able to Focus On the Lone Non-Disastrous Number in Durable Goods

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Seriously, the representative headline appearing in mainstream media for a truly awful Durable Goods report is this: Capital Goods Orders Rise, Showing U.S. Spending Gain. Wow, I guess that's one way to look at it. In fact, if you want to write a positive headline, that's the only way you can look at it. Because, apart from that one small sliver, the report was awful.

The grim details:
  • New Orders for June were down 1%; no way to put a pretty face on that, unless...
  • ex-aircraft orders were 0.6% higher, after May's 4.6% gain.
  • Otherwise,. Ex-Transportation, down 0.6%
  • Capital Goods down 2.3%.
  • Oh yeah, and May's data was actually revised lower.
Bloomberg helpfully noted that Eaton (ETN) and Boeing (BA) are among those "benefiting from a pickup in demand," which is a stretch considering the Bloomberg consensus forecast for the report was for a total orders gain of 1%.

Anyway, despite the reports that "stock futures slipped lower" on the release, remember that for stocks, the report is of low significance. Instead, the key takeaway is that for those watching for signs of economic stabilization the report is of no help.
POSITION:  No positions in stocks mentioned.