...it is ironic that this one piece of unexpected good news failed to excite Wall St , which pervertedly has been too focus on "bad news is good news" hoping worse data would cause the Fed to be more dovish. This highlights that Wall St remains fixated with rate directions but yet to pay enough attention to worsening macro outlook and their adverse ramifications for corporate earnings. Let's leave that to the next chapter. US Durable Goods Orders Unexpectedly Jumped In May
BY Zero Hedge
MONDAY, JUN 27, 2022 - 10:35 PM
With PMIs sinking rapidly and macro surprise indices crashing, analysts remained optimistic of a continued rise (albeit a small 0.1% MoM) in US durable goods orders in preliminary May data. It turns out they were 'under'-optimistic as durable goods orders surged 0.7% MoM (with a small downward revision from +0.5% to +0.4% MoM in April). Source: Bloomberg
That is the 3rd straight monthly increase in orders and pushes them up 12.0% YoY.
Ex Transports, orders rose 0.7% MoM - beating expectations of +0.3%.
The value of core capital goods orders, a proxy for investment in equipment that excludes aircraft and military hardware, rose 0.5% after a 0.3% gain a month earlier.
Finally, Shipments soared by 0.8% MoM - 4 times the 0.2% MoM expected.
None of this data helps the current 'growth scare dominates inflation fears' narrative... as 'good news' is now 'bad news'.
