Durable Goods Orders Not So Durable

The Census Bureau released its preliminary report for August Durable Goods Orders and the results were a little disappointing. Last month, those orders rose 0.4% against a forecast of a 1.5% rise and represented a big slowdown from July’s surge of an upwardly revised 11.7%. Without Transportation components, the rise was an identical 0.4% versus the expected gain of 1%. July’s previously reported growth of 2.6% was revised to 3.2%.

Better news could be found in the accompanying report for core Capital Goods Orders. That measure rose 1.8% and that beat estimates looking for just a 1% boost. At the same time, July’s 1.9% gain was revised to 2.5%.

The Treasury market seems little affected by the news and is holding on to the modest rally that was already taking place. The Ten-Year is yielding around 65 basis points with the Long Bond at 1.39% while the Two-Year anchors the short-end at an unchanged 13 basis points. Crude oil has slipped to just under $40 while the sell-off in gold continues. This morning’s $10 dip has taken gold’s price down to around $1,858. Equities are looking to open in the red. Uncertainty reigns.