A very confusing Census Bureau advanced report on durable goods orders is sending the market down. The DJIA is off 160points or 1.55%.
The headline number was strong -> a 3% rise in durable goods in January, double the expected 1.5% rise. What spooked the market though, was the number after excluding transportation orders. Ex-trans, orders were DOWN .6%, far short of a +1% gain.
The report lends credence to the bears who've suggested that big late-2009 gains in GDP were largely due to unsustainable inventory rebuilding, rather than actual, repeatable growth.
The confusion looks to be due to several factors, not the least of which is a min-boggling increase in "non-defense aircraft and parts" orders....
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