Live Markets: Wednesday data gives good yawn: Durable goods, mortgages

The Brink's

24/04/2024 16:12

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    WEDNESDAY DATA GIVES GOOD YAWN: DURABLE GOODS, MORTGAGES
Investors were unimpressed by Thursday's serving of flavorless
data stew on Wednesday.     
    New orders for long-lasting U.S. goods  USDGN=ECI  - which
includes everything from waffle irons to attack drones -
increased by a healthy 2.6% in March, just to the north of the
2.5% consensus and a substantial acceleration from February's
downwardly-revised 0.7% growth.
    But excavating below the Commerce Department's robust
topline, a 30.6% surge in commercial aircraft orders (here's
looking at you, Boeing  BA.N ), along with a 10.6% jump in
defense related capital goods were responsible for the upside
beat.
    Stripping transportation equipment, orders increased by a
more lackadaisical 0.2%.
    Calling the report "not so encouraging," Nationwide
financial markets economist Oren Klachkin writes that it
"dampens hope of an acceleration in equipment spending. 
    "This continues to be a soft spot in an otherwise strong
economy," Klachkin adds. "What’s more, higher interest rates in
recent weeks will likely dampen any tailwinds from persistently
solid US growth and improving overseas demand."
    Orders for so-called "core capital goods,"  USNDXA=ECI 
which exclude aircraft, and defense items - and is widely viewed
as a barometer of U.S. corporate spending plans - inched 0.2%,
half the pace of the prior month's 0.4% increase, also
downwardly revised.
 
    Moving over to the housing market, the cost of financing
home loans heated up last week, causing a demand cool-down,
according to the Mortgage Bankers Association (MBA).
    The average 30-year fixed contract rate  USMG=ECI  gained 11
basis points to reach 7.24%, the highest level since late
November.
    The uptick "(Put) a damper on applications activity," writes
Joel Kan, deputy chief economist at MBA. "The 30-year fixed rate
increased for the third consecutive week to 7.24 percent, the
highest since November 2023." 
    Would-be borrowers greeted this move with a lack of
enthusiasm. Applications for loans to purchase homes
 USMGPI=ECI  and refinance existing mortgages  USMGR=ECI 
decreased by 1.0% and 5.6%, respectively.
    "Purchase applications declined, as home buyers delayed
their purchase decisions due to strained affordability and low
supply," Kan adds.
    Compared with the same week last year, purchase applications
- considered among the more leading housing market indicators -
are down 14.7%. Refi demand is up 3.3% over the same time
period.
    And the average 30-year fixed rate is 74 basis points
hotter.
    (Stephen Culp)
    *****
    
    
    FOR WEDNESDAY'S EARLIER LIVE MARKET POSTS:
    
    WALL STREET GAINS WITH ECONOMIC DATA AND EARNINGS IN FOCUS -
CLICK HERE
    
    S&P 500 INDEX: TIME FOR A TURN? - CLICK HERE
    
    "STRONG" DOLLAR BUYING SIGNALLED FOR MONTH-END - BARCLAYS -
CLICK HERE
    
    GOLD RUSH - CLICK HERE
    
    SHARE BUYBACKS, THANK YOU! - CLICK HERE
    
    BOJ INTERVENTION WARNINGS? NOT LOOKING CREDIBLE - CLICK HERE
    
    BIG EARNINGS SWINGS - CLICK HERE
    
    EUROPE EYES HIGHER START AS EARNINGS KICK INTO HIGH GEAR -
CLICK HERE
    
    YEN ON THE BRINK, BUT TESLA PULLS BACK  - CLICK HERE 


 
    
    
    
    
    
    

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Durable goods    https://reut.rs/3JAi7IY
Core capital goods    https://reut.rs/3Qe2hYk
MBA    https://reut.rs/4aOmtIq
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