US Durable Goods Orders Ex Transp MoM (May) M/M 1.3% vs. Exp. 0.5% (Prev. 1.1%)

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May Durable Goods Orders Ex Transport (excluding transportation equipment) month-on-month rose 1.3%, well above the market expectation of 0.5%, and the prior month was 1.1%. The durable goods measure excluding transportation is a key indicator of corporate capital expenditure and underlying demand; this increase suggests corporate investment and production activity are improving. Cyclical sectors such as Manufacturing, Capital Goods, and Semiconductor Equipment are likely to see larger order and sales expectations and thus benefit from a cyclical recovery. However, the stronger reading can add upward pressure on interest rates, posing a headwind for bonds, gold, and long-duration growth stocks, and may act as an upside factor for market rates and the dollar.

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