*SCALPSWINGSTRADDLE*

[Zephyr]

Durable Goods Orders - beats
Released On 4/24/2014 8:30:00 AM For Mar, 2014
Prior Prior Revised Consensus Consensus Range Actual
New Orders - M/M change 2.2 % 2.1 % 2.0 % 0.0 % to 3.5 % 2.6 %
Ex-transportation - M/M 0.2 % 0.1 % 0.9 % 0.2 % to 1.2 % 2.0 %
Highlights
Manufacturing is regaining strength as the latest durables orders numbers were notably positive and topped expectations. Durables orders jumped 2.6 percent in March after a 2.1 percent boost the month before. Market expectations were for a 2.0 percent gain. Excluding transportation, March was still robust with a 2.0 percent advance, following a rise of 0.1 percent in February. Analysts projected a 0.9 percent increase for March.

The transportation component increased a monthly 4.0 percent after jumping 6.7 percent the month before. Within transportation, the gain was led by a sharp gain in nondefense aircraft orders with motor vehicle orders also positive. Defense aircraft orders fell after a large jump in February.

Outside of transportation, orders were up on a broad-based basis. All major components were positive.

Investment in equipment rebounded. Nondefense capital goods orders excluding aircraft rebounded 2.2 percent in March after dipping 1.1 percent the prior month. Shipments for this series rose 1.0 percent, following a 0.7 percent gain in February.

The latest durables report indicates that the manufacturing sector is regaining momentum. Shipment numbers may lead analysts to nudge up forecasts for the business equipment component in first quarter GDP.