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Important Statistics

February 27, 2013 – 6:16 pm

stock_charts_250x251Besides Bernanke’s testimony in front of Congress and the sequester issue hitting the news this morning there was a very good economic report that should be the highlighted news event of the day. Durable Goods for January was reported and although the top line number came in as expected, down 5.2%, the core number was up 6.3%, the highest it has been in two years.

The reason the top line was down so sharply is because airplane sales slumped in January after a very strong December. It is not unusual at this time of year for that to happen as sales are brought forward in the last month of

Delving deeper into the report the numbers just get better. There was a 13.5% increase for machinery parts and equipment. That is a clear sign that manufacturers are gearing up production.

Finally if you just exclude transportation, which is very volatile month to month, sales for durable goods increased 1.9% and this is the fifth straight month of increases. This report is important as it tracks bigger ticket items that last at least three years and when people and companies spend money for these items it shows confidence. A growing economy is a confident economy.

This news is much more pleasant than listening to Bernanke or the wrangling over the sequester, both of which are
pretty much meaningless.

Good Trading
Steve Peasley

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