Durable goods orders blew away expectations, rising much more than expected in every aspect. This will prompt upward revisions to Q3 GDP data. It looks as though the fiscal stimulus aimed at business is clicking just at the point where the stimulus aimed at the consumer peters out. The headline rose 1.3% while ex-transportation, they orders rose 0.7%. Revisions were upward as well.
On the wires, the Fed’s Lockhart says inflation likely peaked in July and that it should recede, which is becoming the conventional wisdom.
The dollar is rebounding in the wake of the report, trading down 35 ticks at 1.4735.
