Durable Goods Support Futures Ahead of the Open

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Talking Points:

-US Durable Goods Orders (JAN) comes in at -1.0% vs. -1.7% est. and -5.3% revised prior
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-Durables Ex Transportation (JAN) comes in at 1.1% vs. -0.3% est. and -1.9% revised prior

-Cap Goods Orders Nondefense (JAN) comes in at 1.7% vs. -0.2% est. and -1.8% prior

-Cap Goods Ship Nondefense Air (JAN) comes in at -0.8% vs. -1.0% est. and 0.3% prior

Figures for January Durable Goods Orders in the U.S. beat estimates and supported equity futures ahead of the open, but the figure still indicated a 1.0% decline in orders MoM. A key beat was the Nondefense orders that came in at 1.7% vs. street estimates of a 0.2% decline. Although the nondefense figures came in far above market expectations, it is important to note that all December figures aside from Nondefense Air were revised lower. The largest jumps in the headline orders MoM were in fabricated metals new orders and computers while we saw MoM declines in the growth of transportation related orders.

This data print comes as a relief after weeks of poor data out of the U.S., most notably in the housing market. It will be key to market sentiment whether these gains in the futures hold and carry on into the open, although momentum is weak following risk-aversion overnight with negative headlines out of Ukraine in addition to a huge miss in Australia’s Private Capital Expenditure in the fourth quarter.

SPX500 FXCM CFD February 27, 2014 (5-Minute Chart)