So the DOW is up over 12,300 today. People are reporting this is due to the manufacturing report today that was reporting new orders up 3.1% and that this is a sign of a healthy economy. However what they fail to say is the 50% of this number is from BOEING ALONE. Using this indicator as a sign of a healthy economy is nonsensical.
The reports were kind of surprising to the up-side.
Actually, if you exclude the effect of transportation factory orders rose 1.9%, which is greater than 50% of 3.1%.
Also, note that non-defense capital goods orders excluding aircraft jumped 4.8 percent.
Overall a surprisingly good report. Not what I would have expected either.
WASHINGTON (Reuters) — New orders at U.S. factories rose a greater-than-expected 3.1 percent in March on a rise in civilian aircraft orders, a Commerce Department report showed on Wednesday.
Analysts polled by Reuters were expecting factory orders to rise 2.1 percent. February orders were revised to show a 1.4 percent gain.
Decline in business spending raises alarms
Excluding transportation orders, factory orders rose 1.9 percent after being unchanged in February. February orders excluding transportation were first reported as a 0.4 percent decline.
Orders for durable goods, items meant to least three years or longer, also rose a bigger-than-expected 3.7 percent in March. Analysts were expecting durables orders to gain 3.3 percent.
In a sign sluggishness in business investment may have been short-lived, nondefense capital goods orders excluding aircraft, considered a proxy for business spending, jumped 4.8 percent, the first gain in three months and the largest rise since September 2004.
Transportation orders jumped 9.5 percent on a 38.1 percent increase in civilian aircraft and parts. Orders for metals, machinery, electronic products and electrical equipment all rose.
Still they were expecting 2% and everyone is hailing this as it beat expectations which, really, it didn’t. Well it did but only because of one company.
Download the report overall and compare March 2006 to March 2007. There’s the real story.
If investors aren’t participating in the RE markets, their money has to go somewhere. This whole RE bubble started when the stock bubble migrated out of the stock market and into the RE markets.
Is there a fund that focuses on viagra, depends under garments, mortuaries, health care, crematoriums, and retirement corporations? I’d like to invest in that.
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