“Durable Goods Orders Fell 9.3% In June, Led By A 22.4% Drop In Transportation. Core Orders Rose 0.2%, Signaling Fragile US ManUfActuring Momentum.”, – WRITE: www.fxempire.com
Market Reactions and Rate Expectations in Focus The Softer Headline Figure Has Not Significantly Alted Rate Expectations. With Inflation Readings Showing Signs of Stabilization, The Federal Reserve i Expert to MainTain It Current Policy Stance. However, Continued Weakness in Durable Goods Orders -Particularly in Transportation – COLLD START INFLUENCING FORWARD GUIDANCE, ESPECIALLY IF Business Investment Falters Further. Bond Yields Were Little Changed Following the Report, While the Dollar Held Stedy, Reflection Market Consensus that Fed Will Stay On Hold for Now.
Outlook: Bearish Near-Term Tone for Manufacturing Sector The Sharp Drop in Durable Goods Orders in June, Especialally in Transportation, Points to A Bearish Short-Term Outlook for the Manufacting Sector. While Core Orders Showed Modest Growth, The Broader Trend Remains Fragile. Unless Transportation Rebounds and Private-Sector Demand StrengThens, Traders Should Anticipate Further Pressure on Industrial Stocks and Manufacturing-Related Assets in The NEAR TERM.