Durable goods orders fell 1.1% in May, the Commerce Department said Monday, the biggest decline since November and more than twice as much as views for a 0.4% slide. April orders were revised slightly to a sharper 0.9% drop.
Orders for big-ticket, long lasting goods excluding transportation rose 0.1%, but below analyst estimates for a 0.5% gain. April ex transportation orders were revised to -0.5% from -0.4%.
Core capital goods orders, a proxy for business investment plans, dipped 0.2% vs. forecasts for a 0.5% rise. That was the worst since December.
Transportation tends to be volatile due to big swings in jet orders from Boeing (BA). Boeing racked up a big number of orders for its new 737 Max 10 airliner and others at the Paris Air Show last week, though many weren't firm commitments. Boeing shares were indicated slightly higher before the open in the stock market today after the Dow Jones industrial average component hit all-time highs last week.
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Also in transportation, orders for motor vehicles and parts rose 1.2%. Production of autos and parts is likely to trend lower as General Motors (GM), Ford Motor (F), Fiat Chrysler (FCAU) and others report lower U.S. sales after several years of strong growth to record levels. A huge number of cars coming off lease, putting pressure on auto prices and demand.
Futures for the Dow Jones industrial average, S&P 500 index and Nasdaq 100 continued to signal strong gains at the opening bell.
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