9.9% rise in July, but core capital-goods orders decline

  • U.S. durable goods orders increase by 9.9% in July
  • Excluding transportation sector, orders rise 0.2%
  • Core capital-goods orders decline 0.1%
  • Shipments of core goods fall 0.4%
  • Orders for new cars and trucks up 34.8%
  • Computers and electronics orders down 0.7%
  • Machinery orders remain flat
  • Business investment declines 1.4% in a year
  • High financing costs and trade uncertainty hinder activity
  • Possible Federal Reserve rate cut may boost activity
  • Core goods and shipments signal weakness in Q3 real GDP data

Durable goods orders in the U.S. experienced a moderate recovery in July, rising by 9.9%, following a 6.9% drop in June. Excluding transportation, orders increased by 0.2%. However, core capital-goods orders fell 0.1%. Shipments of core goods decreased by 0.4%. Despite this, business investment has declined by 1.4% over the past year due to high financing costs and uncertainty surrounding future trade policies. A potential Federal Reserve rate cut may rekindle activity. However, core goods and shipments indicate weakness in Q3 real GDP data.

Factuality Level: 8
Factuality Justification: The article provides accurate and objective information about the increase in orders for durable goods, including specific details on different sectors and their performance. It also includes expert opinions and potential future implications. However, it lacks personal perspective or sensationalism.
Noise Level: 2
Noise Justification: The article provides relevant information about U.S. factories’ orders for long-lasting goods and their impact on the economy, including specific numbers and comparisons to previous months. It also discusses the factors affecting business investment such as high financing costs and uncertainty over trade policies. The article does not contain irrelevant or misleading information, and it stays on topic without diving into unrelated territories. However, it could benefit from more analysis of long-term trends or possibilities and providing actionable insights for readers.
Public Companies: Nationwide (N/A)
Key People: Daniel Vielhaber (economist at Nationwide)

Financial Relevance: Yes
Financial Markets Impacted: The article mentions the impact on stocks (DJIA and SPX) and the 10-year Treasury yield, as well as GDP and business investment.
Financial Rating Justification: The article discusses changes in orders for durable goods, which can affect manufacturing companies’ performance and stock market reactions to these changes. It also mentions potential impacts on GDP and business investment, making it financially relevant.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Extreme Rating Justification:
Move Size: No market move size mentioned.
Sector: All
Direction: Up
Magnitude: Medium
Affected Instruments: Stocks, Bonds

Reported publicly: www.marketwatch.com