Durable Goods

DURABLE GOODS:

08:30 03/25 US DATA: Feb durable goods orders +3.4%, their first gain in 7 mos, and were +1.7% ex defense and +3.9% ex transportation. This is far better than expectations for a drop. Boeing Corp reported 4 new orders vs 18 in Jan, one reason nondefense aircraft posted -28.9%. There were also pockets of weakness in primary metals at -0.6%, communications eqpt -5.9%, and motor vehicles -0.6%. But machinery +13.5%, electronics +1.6%, and overall computers +5.6% supported the total; defense cap goods orders were +35.3% in a rebound from -40.6% in Jan. So the bottom line is that this was a mixed report that shows signs of bottoming.Shipments were -0.5% and inventories -0.9%. NDCG shipments were -2.5% in a second drop, suggesting Q1 business investment will be lower.