Instant View: Durable goods orders rebound in May

Reuters News
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Posted: Jun 27, 2012 8:43 AM
Instant View: Durable goods orders rebound in May

NEW YORK (Reuters) - Demand for long-lasting U.S. manufactured goods rebounded more than expected in May and a gauge of business spending plans increased, but slowing global growth suggest the momentum might not be sustained.

COMMENTS:

BORIS SCHLOSSBERG, MANAGING DIRECTOR, BK ASSET MANAGEMENT, NEW YORK

"The problem with durable goods is that it was just not strong enough to really give a push to risk as the core number was just a little lower than expected. But still, it may be supportive of equities early in the morning and to that extent that should be supportive of the euro, aussie and all the risk currencies."

ANDREW GRANTHAM, ECONOMIST, CIBC WORLD MARKETS, TORONTO

"Overall, today's figures are not far enough from consensus expectations to see a large market reaction, or to alter the view that durable goods orders have been pretty much flat since the start of the year."

BRICKLIN DWYER, ECONOMIST, BNP PARIBAS, NEW YORK

"What is surprising is the rise in non-defense aircraft orders. It's not consistent with the Boeing orders we have been seeing. But core durable goods are running quite weak."

DAVID CARTER, CHIEF INVESTMENT OFFICER AT LENOX WEALTH ADVISORS IN NEW YORK

"It was better than expected, which is surprising to see since recent economic reports have been less positive. I'm still concerned we'll see a third summer of an economic deceleration. While this is an important number, news out of Europe is still dominating equity markets."

MARKET REACTION

STOCKS: U.S. stock index futures add slight gains.

BONDS: U.S. Treasury debt prices extended losses slightly.

FOREX: The dollar held onto gains against the euro and yen.