Analysts expected a small rebound in preliminary October Durable Goods Orders after September’s disappointing decline in core orders and CapEx. They were right…
The headline orders print soared 1.0% MoM, smashing expectations of a 0.4% MoM rise. That is the 3rd straight month of rising orders and leaves the YoY gain at 10.7%.
Core (ex-transportation) orders shot up 0.5% MoM (even after seeing September’s print revised lower to -0.9% MoM)
The value of core capital goods orders, a proxy for investment in equipment that excludes aircraft and military hardware, rose 0.7% last month after a downwardly revised 0.8% decline in September
GDP will get juiced by this print as non-defense, ex-aircraft shipments surged 1.3% MoM.
Is this good news, bad news for stocks?
Finally, we note that all of these data are notional, not real, so mentally adjust your astonishment for inflation.