Durable Goods Orders Falter in June 2010
durable goods orders June 2010
Durable Goods Orders Falter

We found no good news in the Durable Goods Orders Report for the month of June. Others pointed to a gain in non-defense capital goods ex-aircraft as reason to cheer, but not here.

"The Greek" earned clients a 23% average annual return over five years as a stock analyst on Wall Street. While writing for Wall Street Greek and others, he presciently predicted the financial crisis and housing and banking failures of the Great Recession. Visit the front pages of Wall Street Greek now to see our current coverage of business news, the global economy & financial markets, real estate, shipping, fine art & antiquities and global affairs.

(Tickers: NYSE: CAT, NYSE: WHR, NYSE: F, NYSE: HMC, NYSE: TM, NYSE: BA, Nasdaq: AAPL, Nasdaq: MSFT, Nasdaq: DELL, Nasdaq: CSCO, NYSE: TSM, Nasdaq: INTC, NYSE: RTP, NYSE: BHP, Nasdaq: VALE, NYSE: CAT, NYSE: LMT, NYSE: COL, NYSE: NOC, NYSE: X, NYSE: AZN, Nasdaq: SCHW, NYSE: BA, Nasdaq: SYMC, NYSE: S, NYSE: IP, Nasdaq: CTXS, NYSE: EK, NYSE: DIA, NYSE: SPY, Nasdaq: QQQQ, NYSE: DOG, NYSE: SDS, NYSE: QLD, NYSE: NYX, Nasdaq: NDAQ, NYSE: ICE)

Durable Goods Orders Falter in June 2010

GreekDurable Goods Orders were reported on Wednesday morning and contributed no reason for stocks to stabilize (so they didn't). June's Orders fell a full percentage point, where economists expected a one point gain, based on Bloomberg's survey (not the mayor - he's busy raising 2nd Avenue and subway fares). The drop followed a revised worse 0.8% slip in May. Like the headline, there really was not much good news to be found within the details of the data either, except perhaps in autos and a few other segments discussed below.

Report Details & Analysis

Economists and investors often like to pull the big-ticket transportation segment from the measure in order to get to less skewed data. We are sorry to report though, that excluding almost anything did little good this time around. Excluding transportation was useless, as orders still fell by 0.6%. Excluding defense orders did little good as well, as the data mine produced another decline of 0.7%.

Transportation Orders have been horrible of late, and should be a red flag to airline investors (though we hear the companies are reporting profits while paying pilots minimum wage). Transportation orders have declined four of the last five months, and dropped 2.4% in June (that's $1.1 billion worth of orders - no small change). The news came counter to decent airplane orders reported by Boeing (NYSE: BA) that same day. Boeing's shares still took a hit though, on lower revenues, earnings and a warning about defense cutbacks.

Manufacturing saw a 1.3% drop in orders. We have been warning for some time now that manufacturing, the one positive driver of economic revival, was wearing thin. We've now seen workweek hours cut back and regional excitement in New York, Philly and Chicago trimmed. Finally, manufacturing orders confirm there will be one less column holding up the economy in short time.

Remember how we keep hearing about the strength in technology orders, again repeated by the Fed Chairman last week? Well, according to the latest durable goods survey, we're not so sure even that is holding up. According to the report, New Orders for Computers & Electronic Products fell 1.9%. Be careful though before selling your Apple (Nasdaq: AAPL), Dell (Nasdaq: DELL) and Microsoft (Nasdaq: MSFT), since this category seems to be skewed this month by semiconductor orders (maybe look for warning signs from Taiwan Semiconductor (NYSE: TSM), which reports this week). Remember, though, that Intel (Nasdaq: INTC) posted strong results recently. Still, we attributed those to pent-up demand, not economic revival. In any event, the subcategory, Computers & Related Products saw orders rise 2.5%; good news for Dell, Sony (NYSE: SNE) and the box maker boys.

Communications Equipment Orders rose 1.5% (Nasdaq: CSCO); Primary Metals fell 2.0% (NYSE: RTP, NYSE: BHP, Nasdaq: VALE); Fabricated Metal Products +1.2% (NYSE: X, NYSE: NUE); and Motor Vehicles and Parts +2.5%. Non-Defense Aircraft & Parts Orders dropped 25.6%! Defense Aircraft & Parts Orders rose 6.5% (NYSE: LMT, NYSE: COL, NYSE: NOC).

Non-Defense Capital Goods Orders Ex-Aircraft is seen as a measure of business investment. Well, it rose 0.6% in June. Woo hoo! No, "boo hoo" is more like it. This category was up 4.6% in May, after a disappointing April decline of 2.8%. The slow down in the pace of growth is disturbing, and complements much of the other data we've cited here of late. This is showing the pace of economic expansion is slowing. We remind that what usually follows deceleration is complete stoppage, and perhaps even reversal. Can you say double-dip boys and girls?

durable goods forum message board chat rooms

In Wednesday's corporate news, the FDA reviewed AstraZeneca's (NYSE: AZN) heart drug. Charles Schwab (Nasdaq: SCHW) offered its latest business update. The earnings schedule included news from Boeing (NYSE: BA), Symantec (Nasdaq: SYMC), Sprint Nextel (NYSE: S), International Paper (NYSE: IP), Citrix Systems (Nasdaq: CTXS), Eastman Kodak (NYSE: EK), 8x8 Inc. (Nasdaq: EGHT), A.T. Cross (Nasdaq: ATX), ACCO Brands (NYSE: ABD), Acxiom (Nasdaq: ACXM), Advance America, Cash Advance Centers (NYSE: AEA), Advanced Analogic (Nasdaq: AATI), Advantest (NYSE: ATE), Agnico-Eagle Mines (NYSE: AEM), Akamai Technologies (Nasdaq: AKAM), Allegheny Technologies (NYSE: ATI), Alliance Healthcare Services (NYSE: AIQ), Allos Therapeutics (Nasdaq: ALTH), Alvarion (Nasdaq: ALVR), AMAG Pharmaceuticals (Nasdaq: AMAG), American Capital Agency (Nasdaq: AGNC), American Railcar (Nasdaq: ARII), American Safety Insurance (NYSE: ASI), Ameriprise Financial (NYSE: AMP), AMN Healthcare Services (NYSE: AHS), Anworth Mortgage Asset (NYSE: ANH), ArcelorMittal (NYSE: MT), ARRIS Group (Nasdaq: ARRS), Arrow Electronics (NYSE: ARW), AsiaInfo Holdings (Nasdaq: ASIA), Aspen Insurance (NYSE: AHL), Assurant (NYSE: AIZ), AU Optronics (NYSE: AUO), AudioCodes (Nasdaq: AUDC), Avery Dennison (NYSE: AVY), AVX Corp. (NYSE: AVX), Axcelis (Nasdaq: ACLS), Banco Bilbao Vizcaya Argentaria SA (Nasdaq: BBVA), Banco Bradesco SA (NYSE: BBD), Berry Petroleum (NYSE: BRY), BIO-Key Int'l (Nasdaq: BKYI), Biokeys Pharmaceuticals (Nasdaq: BKYS), BioMed Realty Trust (NYSE: BMR), BMC Software (Nasdaq: BMC), BOK Fin'l (Nasdaq: BOKF), Boston Private Fin'l (Nasdaq: BPFH), Brandywine Realty Trust (NYSE: BDN), Broadvision (Nasdaq: BVSN), Bruker (Nasdaq: BRKR), Cabot (NYSE: CBT), Cadence Design Systems (Nasdaq: CDNS), Cal Dive Int'l (NYSE: DVR), California Water Service (NYSE: CWT), Callaway Golf (NYSE: ELY), Canadian Pacific Railway (NYSE: CP), Capstead Mortgage (NYSE: CMO), CardioNet (Nasdaq: BEAT), Cedar Shopping Center (NYSE: CDR), Central European Media (Nasdaq: CETV), Cerner (Nasdaq: CERN), CEVA (Nasdaq: CEVA), Charles & Covard (Nasdaq: CTHR), Chemed (NYSE: CHE), Cincinnati Financial (Nasdaq: CINF), Clarient (Nasdaq: CLRT), Cliff's Natural Resources (NYSE: CLF), CMS Energy (NYSE: CMS), Coca-Cola Enterprises (NYSE: CCE), Colfax (NYSE: CFX), Comcast (Nasdaq: CMCSA), CommScope (NYSE: CTV), Commtouch Software (Nasdaq: CTCH), Community Capital (Nasdaq: CPBK), Community Health Systems (NYSE: CYH), Compellent Technologies (NYSE: CML), Concur Technologies (Nasdaq: CNQR), ConocoPhillips (NYSE: COP), Constellation Energy (NYSE: CEG), Corning (NYSE: GLW), Corporate Office Properties (NYSE: OFC), Covance (NYSE: CVD), Crown Castle Int'l (NYSE: CCI), Cullen/Frost Bankers (NYSE: CFR), CyberOptics (Nasdaq: CYBE), Cytokinetics (Nasdaq: CYTK), Destination Maternity (Nasdaq: DEST), Digital River (Nasdaq: DRIV), Dominion Resources (NYSE: D), DryShips (Nasdaq: DRYS), Dyax (Nasdaq: DYAX), Ecopetrol (NYSE: EC), Electro Scientific (Nasdaq: ESIO), Empresas ICA (NYSE: ICA), Encore Wire (Nasdaq: WIRE), Eni S.p.A. (NYSE: E), Entropic (Nasdaq: ENTR), Equifax (NYSE: EFX), Equinix (Nasdaq: EQIX), Equity Residential (NYSE: EQR), Euronet Services (Nasdaq: EEFT), Everest Re (NYSE: RE), EXACT Sciences (Nasdaq: EXAS), Express Scripts (Nasdaq: ESRX), Extra Space Storage (NYSE: EXR), FalconStor Software (Nasdaq: FALC), Famous Dave's of America (Nasdaq: DAVE), FBR Capital Markets (Nasdaq: FBCM), FICO (Nasdaq: FICO), First Merchants (Nasdaq: FRME), FirstService (Nasdaq: FSRV), Five Star Quality Care (AMEX: FVE), Flowserve (NYSE: FLS), FMC Corp. (NYSE: FMC), General Dynamics (NYSE: GD), General Maritime (NYSE: GMR), GeoMet (Nasdaq: GMET), Goldcorp (NYSE: GG), Greatbatch (NYSE: GB), Green Mountain Coffee (Nasdaq: GMCR), Grupo TMM SA (NYSE: TMM), GSI Commerce (Nasdaq: GSIC), Gulfmark Offshore (NYSE: GLF), Hatteras Fin'l (NYSE: HTS), Headwaters (NYSE: HW), Hecla Mining (NYSE: HL), Helix Energy (NYSE: HLX), Heritage-Crystal Clean (Nasdaq: HCCI), Hess (NYSE: HES), HickoryTech (Nasdaq: HTCO), Highwoods Properties (NYSE: HIW), Hill-Rom Holdings (NYSE: HRC), Horace Mann Educators (NYSE: HMN), Hospira (NYSE: HSP), Hudson Valley Holding (Nasdaq: HUVL), Huron Consulting (Nasdaq: HURN), IAC (Nasdaq: IACI), iCad (Nasdaq: ICAD), Innovative Solutions (Nasdaq: ISSC), Insignia Systems (Nasdaq: ISIG), InterDigital (Nasdaq: IDCC), Interface (Nasdaq: IFSIA), International Coal Group (NYSE: ICO), International Paper (NYSE: IP), International Ship Holding (NYSE: ISH), Investors Bancorp (Nasdaq: ISBC), iRobot (Nasdaq: IRBT), ITC Holdings (NYSE: ITC), Itron (Nasdaq: ITRI), JMP Group (NYSE: JMP), Jones Apparel (NYSE: JNY), Jones Lang LaSalle (NYSE: JLL), Kadant (NYSE: KAI), Keithley Instruments (NYSE: KEI), Kemet (AMEX: KEM), Key Energy (NYSE: KEG), Kirby (NYSE: KEX), Kyocera (NYSE: KYO), L-1 Identity Solutions (NYSE: ID), Lam Research (Nasdaq: LRCX), Las Vegas Sands (NYSE: LVS), Lazard (NYSE: LAZ), LeMaitre Vascular (Nasdaq: LMAT), Lincoln National (NYSE: LNC), Littlefield (Nasdaq: LTFD), Logitech (Nasdaq: LOGI), LogMein (Nasdaq: LOGM), LoopNet (Nasdaq: LOOP), LSI Corp. (NYSE: LSI), M/I Homes (NYSE: MHO), ManTech Int'l (Nasdaq: MANT), Marine Products (NYSE: MPX), MarketAxess (Nasdaq: MKTX), Martha Stewart Living (NYSE: MSO), Mastech (NYSE: MHH), MeadWestVaco (NYSE: MWV), Melco Crown (Nasdaq: MPEL), Merit Medical (Nasdaq: MMSI), MERU Networks (Nasdaq: MERU), Metabolix (Nasdaq: MBLX), Methanex (Nasdaq: MEOH), Mine Safety Appliances (NYSE: MSA), Morningstar (Nasdaq: MORN), Mylan (NYSE: MYL), NBTY (NYSE: NTY), Nektar Therapeutics (Nasdaq: NKTR), Ness Technologies (Nasdaq: NSTC), NetLogic Microsystems (Nasdaq: NETL), Neurocrine Biosciences (Nasdaq: NBIX), NeuStar (NYSE: NSR), New York Community Bancorp (NYSE: NYB), Newmont Mining (NYSE: NEM), Newport (Nasdaq: NEWP), Nissan Motor (Nasdaq: NSANY), Noranda Aluminum (NYSE: NOR), NuSkin (NYSE: NUS), Oceaneering Int'l (NYSE: OII), Odyssey Healthcare (Nasdaq: ODSY), Owens-Illinois (NYSE: OI), Old Dominon Freight (Nasdaq: ODFL), Orchids Paper Products (AMEX: TIS), O'Reilly Automotive (Nasdaq: ORLY), Orthofix (Nasdaq: OFIX), P.F. Chang's (Nasdaq: PFCB), Park-Ohio (Nasdaq: PKOH), Patni Computer (NYSE: PTI), PC Connection (Nasdaq: PCCC), PDL BioPharma (Nasdaq: PDLI), Pinnacle Data Systems (AMEX: PNS), Pioneer Natural Resources (NYSE: PXD), Pioneer Southwest Energy (NYSE: PSE), Praxair (NYSE: PX), PSS World Medical (Nasdaq: PSSI), Pzena Investment Management (NYSE: PZN), Quaker Chemical (NYSE: KWR), Quality Distribution (Nasdaq: QLTY), Quantum (NYSE: QTM), Questcor Pharma (Nasdaq: QCOR), RailAmerica (NYSE: RA), Realty Income (NYSE: O), Rightnow Technologies (Nasdaq: RNOW), Rockwell Automation (NYSE: ROK), Rollins (NYSE: ROL), RPC, Inc. (NYSE: RES), Rurban Financial (Nasdaq: RBNF), Ryland Group (NYSE: RYL), Sangamo Biosciences (Nasdaq: SGMO), Sealed Air (NYSE: SEE), Selective Insurance (Nasdaq: SIGI), Service Corp. (NYSE: SCI), SFN Group (NYSE: SFN), Shinhan Fin'l (NYSE: SHG), Shutterfly (Nasdaq: SFLY), Silgan Holdings (Nasdaq: SLGN), Silicon Laboratories (Nasdaq: SLAB), SJW (NYSE: SJW), SK Telecom (NYSE: SKM), Skechers USA (NYSE: SKX), SourceFire (Nasdaq: FIRE), Southern Co. (NYSE: SO), Span-America Medical (Nasdaq: SPAN), Spartan Stores (Nasdaq: SPTN), Spectranetics (Nasdaq: SPNC), Steiner Leisure (Nasdaq: STNR), Stillwater Mining (NYSE: SWC), Stoneridge (NYSE: SRI), Stratasys (Nasdaq: SSYS), Superior Energy (NYSE: SPN), SurModics (Nasdaq: SRDX), Susquehanna Bancshares (Nasdaq: SUSQ), Symantec (Nasdaq: SYMC), Symetra Fin'l (NYSE: SYA), Taleo (Nasdaq: TLEO), Tata Communications (NYSE: TCL), TC Pipelines (Nasdaq: TCLP), TDK (OTC: TTDKY.PK), Telular (Nasdaq: WRLS), Teradyne (NYSE: TER), Tesoro (NYSE: TSO), Tetra Tech (Nasdaq: TTEK), Dixie (Nasdaq: DXYN), The Medicines Co. (Nasdaq: MDCO), Timberland (NYSE: TBL), Titan Int'l (NYSE: TWI), Torchmark (NYSE: TMK), Tower Bancorp (Nasdaq: TOBC), Trinity Industries (NYSE: TRN), TriQuint Semi (Nasdaq: TQNT), Triumph Group (NYSE: TGI), Tyler Technologies (NYSE: TYL), UGI (NYSE: UGI), UMB Financial (Nasdaq: UMBF), United Therapeutics (Nasdaq: UTHR), Universal American (NYSE: UAM), Universal Stainless & Alloy (Nasdaq: USAP), Univest Corp (Nasdaq: UVSP), USA Mobility (Nasdaq: USMO), Varian Medical (NYSE: VAR), Vertex Pharmaceuticals (Nasdaq: VRTX), Virgin Media (Nasdaq: VMED), ViroPharma (Nasdaq: VPHM), Virtusa (Nasdaq: VRTU), Visa (NYSE: V), VistaPrint (Nasdaq: VPRT), Voltaire (Nasdaq: VOLT), WABCO (NYSE: WBC), Waddell & Reed Fin'l (NYSE: WDR), Walter Energy (NYSE: WLT), Waters (NYSE: WAT), WellPoint (NYSE: WLP), Whiting Petroleum (NYSE: WLL), Willis Group (NYSE: WSH), Wintrust Fin'l (Nasdaq: WTFC), WisdomTree Investments (OTC: WSDT.PK), Woodward (Nasdaq: WGOV) and Wyndham Worldwide (NYSE: WYN).

Please see our disclosures at the Wall Street Greek website and author bio pages found there. This article and website in no way offers or represents financial or investment advice. Information is provided for entertainment purposes only.

Greek festivals foodInquiries about Wall Street Greek content and advertising services can be emailed to Advertise @WallStreetGreek.com. Article sponsored by Wall Street Jobs.
Related Stocks:
8X8 ACCO BRANDS ACXIOM CORP ADVANTEST SP ADR AGNICO EAGLE MINES AM CAPITAL AGN REIT AMAG PHARMA AMERICAN RAILCAR AMN HEALTHCARE ANWORTH MORTG ASSET ARROW ELECTRONICS ASPEN INSURANCE HLD ASTRAZENECA SP ADS AU OPTRONICS SP ADR AUDIOCODES AVX AXCELIS TECHS Akamai Technologies Allegheny Technologies Ameriprise Financial Apple Arcelor Mittal Assurant Avery Dennison Corp BANCO BR SP ADR PFD BHP BILLITON SP ADR BIOMED REALTY REIT BOK FINL BOSTON PRIV HLDG BRANDYWINE REIT BROADVISION BRUKER Boeing Co CABOT CORP CADENCE DESIGN CAL WATER SERV GRP CALLAWAY GOLF CAPSTEAD MORT REIT CDN PACIFIC RAILWAY CEDAR REAL TRT REIT CENTRAL EURO MEDI-A CEVA CHARLES & COLVARD CHEMED CIMPRESS CLIFFS NATURAL RES CMS Energy COLFAX COMM HEALTH SYSTEMS CORPORATE REIT-SBI CULLEN/FROST BANKER CVD CYBEROPTICS CYREN Caterpillar Cerner Corp Cincinnati Financial Cisco Systems Citrix Systems Comcast Corp ConocoPhillips Corning DESTINATION MTRNTY DIXIE GROUP DRYSHIPS DYAX Dominion Resources ECOPETROL SA SP ADR ELECTRO SCIEN IND EM ICA SAB SP ADR ENCORE WIRE ENI SP ADR EURONET WORLDWIDE EVEREST RE EXACT SCIENCES EXTRA SP ST REIT Equifax Equity Residential FALCONSTOR SOFTWARE FAMOUS DAVE'S AMER FIRST MERCHANTS FMC Corp FSRV Flowserve Corp Ford Motor GOLDCORP GREATBATCH GULFMARK OFFSHORE-A Genl Dynamics HATTERAS FINL REIT HEADWATERS HECLA MINING HELIX ENERGY SOLNS HIGHWOOD PROP REIT HILL-ROM HLDG HONDA MOTOR SP ADR HORACE MANN EDUCATO HRTG-CYSTL CLN HURON CONSULTING Hess Corp Hospira IAC/INTERACTIVE INNOVATIVE SOL&SUPP INSIGNIA SYSTEMS INTERDIGITAL INTL SHIPHOLD CORP IROBOT ITC HLDNG ITRON Intel Corp International Paper JMP GROUP JONES LANG LASALLE KADANT KEY ENERGY SERVICES KIRBY KYOCERA SP ADR LAS VEGAS SANDS LAZARD-A LEMAITRE VASCULAR LOGITECH INTL N LOGMEIN Lam Research Lincoln National Lockheed Martin M/I HOMES MANTECH INTL-A MARINE PRODUCTS MARKETAXESS HOLDING MASTECH HLDGS MEDICINES MELCO CROWN SP ADR MERIT MED SYS METHANEX MORNINGSTAR MRTHA STWRT LVG OMN MeadWestvaco Corp Microsoft NEKTAR THERAPEUTICS NEUROCRINE BIOSCNCE NEUSTAR-A NEWPORT NU SKIN ENTERPR-A NY COMMTY BANCORP Nasdaq OMX Group Newmont Mining Northrop Grumman Nucor Corp OCEANEERING INTL OLD DOMINION FREIGH ORTHOFIX INTL Owens-Illinois PARK OHIO HOLDINGS PC CONNECTION PDL BIOPHARMA POWERSHARES QQQ PROSHS ULTRA QQQ PRSHS SHORT DOW 30 PZENA INV MNGMNT-A Pioneer Natural Resources Praxair QUAKER CHEMIC. QUANTUM DSSG REALTY INCOME REIT RIO TINTO SP ADR ROLLINS RPC Rockwell Automation Rockwell Collins S&P DEP RECEIPTS SANGAMO BIOSCIENCES SELECTIVE INSURANCE SERVICE CORP INTL SHINHAN FIN SP ADR SHUTTERFLY SILGAN HLDGS SILICON LABORATOR SJW CORP SK TELCOM SP ADR SKECHERS USA-A SONY SP ADR SPAN-AMERICA MED SPDR DJ IN AVGUTS-1 SPECTRANETICS STEINER LEISURE STILLWATER MINING STONERIDGE SUPERIOR ENRGY SERV SURMODICS SYMETRA FIN Sealed Air Southern Co Symantec Corp TAIWAN SEMI SP ADR TDK CORP SP ADR TERADYNE TETRA TECH TITAN INTL TOYOTA MOTOR SP ADR TQNT TRINITY IND TRIUMPH GROUP TYLER TECHNOLOGIES Tesoro Petroleum Co Torchmark Corp UGI UMB FINANCIAL UNITED THERAPEUTICS UNIV STAINLES&ALLOY UNIVEST US STEEL VIRTUSA Varian Medical Systems Vertex Pharmaceuticals Visa WABCO HLDGS WADDELL&REED FINL-A WHITING PETROLEUM WILLIS GROUP HLGS WINTRUST FINANCIAL WLT WOODWARD Waters Corp Whirlpool Corp Wyndham Worldwide
Stock Market XML and JSON Data API provided by FinancialContent Services, Inc.
Nasdaq quotes delayed at least 15 minutes, all others at least 20 minutes.
Markets are closed on certain holidays. Stock Market Holiday List
By accessing this page, you agree to the following
Privacy Policy and Terms and Conditions.
Press Release Service provided by PRConnect.
Stock quotes supplied by Six Financial
Postage Rates Bots go here