from TheBigPicture by Peter Boockvar
July Durable Goods rose a much better than expected 4.9% vs the estimated gain of 3% but ex transports, new orders rose .8%, .1% less than expected. The June data for both headline and ex transports were revised higher. Non defense capital goods ex aircraft, the core capital spending component, fell .3% after healthy gains in the two prior months and is why the S&P futures likely traded modestly lower after the report. Leading the headline gain was a 107.2% rise in nondefense aircraft and a .9% gain in vehicles and parts (as many auto plants ramped up again). Orders...
Manufacturers' orders for durable goods jumped 4.9% last month to a seasonally adjusted $168.43 billion, the Commerce Department said Wednesday. That was the largest increase since 5.4% in July 2007.
Economists surveyed by Dow Jones Newswires had projected a 3% gain in July orders. Overall durable goods orders for June were revised up, estimated to have declined 1.3% instead of the 2.2% drop previously reported.
As can be seen above, the huge jump came from transportation equipment. Cash for clunkers? Nope. Back to the WSJ:
Transportation-related durables climbed 18.4% in July, the biggest gain since September 2006. Orders for commercial planes soared 107.2%, following a 30% drop the previous month.
U.S. Stock-Index Futures Fall as China Mulls Curbs, Oil Drops
Aug. 26 (Bloomberg) -- U.S. stock-index futures declined, suggesting the Standard & Poor’s 500 Index will reverse yesterday’s gain, as China sought to rein in its economy and oil slumped as the dollar gained against the euro.
Caterpillar Inc. and DuPont Co. fell in Europe after China’s State Council said it will increase “guidance” of industries including steel, cement, glass and power equipment. ConocoPhillips declined as crude extended its retreat from a 10- month high. Williams-Sonoma Inc. rose after reporting second- quarter profit that beat analysts’ estimates and increasing its forecast for the third quarter.
S&P 500 futures expiring in September fell 0.1 percent to 1,024.70 at 8:11 a.m. in New York. Dow Jones Industrial Average futures dropped 8 points, or 0.1 percent, to 9,515. Futures rose earlier as investors awaited government reports on sales of new houses and durable goods that may add to evidence the economy is recovering from recession.
Toyota (TM) Cuts: A Warning For The Industry
Toyota (TM) plans to cut its global capacity to manufacture vehicles by as much as one million units per year. It now has the ability to build 10 million autos, but will only make 6.7 million during 2009. Toyota’s move should increase the efficiency of existing plants, but it raises the question of whether other global car companies have too many plants in operation.
BDI numbers less cliff diving +39 to 2427