US market advanced durable goods orders 2.6% versus 2.5% expected

• Prior month 1.3% (revised). Revised even lower to 0.7%
• nondefense capital goods orders ex air 0.2% vs 0.2% expected.
• Prior nondefense capital goods orders ex-air 0.7% revised to 0.4%
• Ex transportation 0.2% versus 0.3% expected. Prior month revised to 0.1% from 0.3%
• Ex-Defense 2.3% versus 1.5% (revised from 2.1%)

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Shipments

• Shipments of manufactured durable goods in March decreased slightly by -$0.1 billion, remaining virtually unchanged at $282.4 billion.
• This minor decrease follows a 1.2% increase in February.
• Transportation equipment shipments decreased by $0.4 billion or 0.5%, totaling $89.4 billion, contributing significantly to the overall decrease.
• This decline in transportation equipment shipments marks a downturn in three of the last four months.

Transportation is very volatile with Boeing numbers fluctuating wildly.

Capital Goods Orders details:

• Nondefense new orders for capital goods in March:

  • Increased by $4.5 billion or 5.4% to $87.6 billion.
  • Shipments decreased by $1.3 billion or 1.5% to $80.5 billion.
  • Unfilled orders increased by $7.1 billion or 0.8% to $851.1 billion.
  • Inventories increased by $0.7 billion or 0.3% to $230.7 billion.

• Defense new orders for capital goods in March:

  • Increased by $1.2 billion or 10.6% to $12.9 billion.
  • Shipments decreased by $0.1 billion or 0.4% to $14.1 billion.
  • Unfilled orders decreased by $1.2 billion or 0.6% to $204.1 billion.
  • Inventories increased by $0.1 billion or 0.3% to $25.2 billion.

The Nondefense orders look solid.

Overall, it is a decent/strong report but is subject to revisions (will see the next in the Factory orders in a little over a week).

The US stocks maintain its gains:

• S&P index +12.7 points
• NASDAQ index +128.50 points

US yields remain higher:

• 2-year yield 4.935%, +3.2 basis points
• 10 year yield 4.633%, +3.6 basis points
• 30-year yield 4.755%, +3.2 basis points

The USDJPY is trading at 154.93 after spiking to 155.164 prior to the report. After running higher, the price moved all way back down toward 154.77 before bouncing again.

This article was written by Greg Michalowski at www.forexlive.com.