Durable Goods Helps U.S. Stock Market
Today, the Commerce Department reported on durable goods orders for last month. The result is reasonably positive. Stock Market Funding reports on what the new numbers say about the economy:
The Commerce Department says demand for durable goods rose 1.8 percent last month, far better than the 0.6 percent decline that economists expected.
It followed a similar 1.8 percent rise in April, with both months posting the best performance since December 2007, the month the recession began.
The news put a little optimism into investors. The Dow is up by more than 60 points, and the Nasdaq and S&P 500 are both making gains as well. The Dow is off its session high, however, having pared some of its gains.
Earnings forecasts are also helping the stock market right now. Earnings are generally poor, but they are showing improvement. The earnings forecasts are probably part of the reason that gains on the market have slowed. However, the fact that they point to some better news coming is probably keeping the bears from overwhelming the bulls. Indeed, the relatively good news is overcoming the unexpectedly poor new home sales data that has come out.
Retail stocks are having a reasonably good day today. Retail stocks are affected by both earnings forecasts and durable goods orders. However, gains to retail stocks are likely to be limited until a substantial improvement in consumer confidence and spending can be confirmed. Retail stocks rely heavily on consumer actions, and those are unlikely to provide a great deal of help until employment picks up and people feel better about the economy.
Disclaimer: I am not an investment professional. Nothing in this piece or on this Web site should be construed as investment advice. Before making investment decisions, do your own research and/or consult with an investment professional. All investment comes with the risk of loss. You are responsible for your own investment decisions and any loss that may result from your decisions.
