This page has been archived and commenting is disabled.

Durable Goods Orders Beat Expectations On Boeing Orders

Tyler Durden's picture




 

The May Durable Goods data released moments ago (which like in previous instances will almost certainly be revised downward subsequently but is enough to trigger kneejerk momentum response algos) was better across the board, printing at a 3.6% increase in May on expectations of a 3.0% rise, down from an upward revised 3.6% in April. Virtually all of the pick up in new orders was due to a surge in Boeing orders, which recorded 232 new plane orders, of which however half were orders (funded by still cheap credit) for planes still in the design phase. Stripping away volatile orders for transports (of which non-defense aircraft and parts exploded by 51% in May), the remaining durable goods orders posted a far more modest 0.7% increase, which too beat expectations of an unchanged print. Will today be the day when good economic news are finally bad market news? Stay tuned.

Looking at pure CapEx, there was a glimmer of hope with non-defense capital goods ex-aircraft orders and shipments both posting a modest bounce, of 1.1% and 1.7%, beating expectations of an increase of 0.5% and 0.8% respectively. More credit-funded future demand pulled into the present, or real economic recovery? Yet another question that we won't know the answer to thanks to the Fed's misallocation of resources.

 

- advertisements -

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Tue, 06/25/2013 - 08:49 | 3690572 Undecided
Undecided's picture

http://business.financialpost.com/2013/06/25/new-exchange-launched-to-take-on-the-tsx/

 

New Canadian exchange being opened because of High frequency trading

Tue, 06/25/2013 - 09:00 | 3690605 jbvtme
jbvtme's picture

Boeing...you mean the corvair with wings?

Tue, 06/25/2013 - 09:01 | 3690616 CPL
CPL's picture

The edisel of the air.

Tue, 06/25/2013 - 09:02 | 3690622 krispkritter
krispkritter's picture

You have to wonder why they would be getting more orders for these things...reminds me of the 70's Pinto.

http://www.bloomberg.com/news/2013-06-12/ana-scraps-787-dreamliner-flight-after-engine-fails-to-start.html

Tue, 06/25/2013 - 09:08 | 3690643 CPL
CPL's picture

Only their shareholders will know.  Like the pinto they've probably knocked 30% of the price and those that are dumb enough to purchase one do so.  Especially without an inspection body worth a damn now to regulate the airplane parts counterfieting going on.

Kind of hard turning over the engine when most of the ancilary parts are broken to begin with.  Even harder troubleshooting because nobody will admit what's broken.  Which leaves the only one route, disassemble and test everything.

Tue, 06/25/2013 - 09:10 | 3690654 jbvtme
jbvtme's picture

i hope that snowden's choice of aircraft is more discerning...

Tue, 06/25/2013 - 09:48 | 3690853 xtop23
xtop23's picture

Oh awesome, everything's fixed. Taper on.

 

Tue, 06/25/2013 - 09:08 | 3690644 walküre
walküre's picture

Whichever company has a car that runs on farts on their drawing board will get at least 2 confirmed orders from me.

This is beyond stupid. Orders on planes that are in the drawing board stage being counted as "durable goods orders" has as much meaning as a "survey" among consumers on how much they're expecting to spend during the Holidays.

Tue, 06/25/2013 - 12:06 | 3691430 CPL
CPL's picture

Nortel gets demolished by doing it in the early 2000's because it is a bad thing.  Today, 7 years later, just having a badly planned idea is reason for celebration.

Tue, 06/25/2013 - 09:11 | 3690645 jbvtme
jbvtme's picture

out

Tue, 06/25/2013 - 09:41 | 3690825 max2205
max2205's picture

PO from the Govt always go to IBM and Boeing if they need a good report....sham

Tue, 06/25/2013 - 12:07 | 3691437 CPL
CPL's picture

There's a reason they aren't household names anymore.

 

Nobody cares about them.  At all.  Worthless discovery, poor release management, shitty track record on projects in the last decade.

 

Fuck them both as companies.  Old IP notwithstanding, it would be nice to see the lazy fucks do something.  I know it's too much to ask though.  I think they need a pink slip party and a chapter 11.

Tue, 06/25/2013 - 09:11 | 3690649 jbvtme
jbvtme's picture

out

Tue, 06/25/2013 - 09:10 | 3690657 GMadScientist
GMadScientist's picture

If they took the guys from the Mustang line and made them split the work up so it could be farmed out overseas, they'd probably make a Pinto too.

Tue, 06/25/2013 - 09:03 | 3690627 CPL
CPL's picture

Yeah the new exchange, until BATS is burned to the ground that won't happen either.  HFT's are SaaS, software as a service.  People subscribe to the BATS service and BATS figures out how to fuck with it.

 

Then again, could be a position to allow whomever sets it up cut BATS throat.  Lots of ways it can be puttered with and help with social streamlining.

 

Tue, 06/25/2013 - 08:52 | 3690579 fonzannoon
fonzannoon's picture

expect data to continue to make Bernanke look smart.

Tue, 06/25/2013 - 09:14 | 3690672 SheepDog-One
SheepDog-One's picture

But wasn't good news supposed to be very bad now? Hastening the 'tapering' signals? 

Tue, 06/25/2013 - 09:54 | 3690881 insanelysane
insanelysane's picture

Called it yesterday.  Now that the Fed has demanded that bad news be bad news and good news is good news, no more bad news will be allowed.

Tue, 06/25/2013 - 08:57 | 3690600 ebworthen
ebworthen's picture

"More credit-funded future demand pulled into the present, or real economic recovery? Yet another question that we won't know the answer to thanks to the Fed's misallocation of resources."

Considering the trillions the FED has squandered and mis-allocated I'd say the latter.

The false perception of real economic recovery dying on the vine combined with FED tapering would be a cork popper, but I'm not holding my breath.

Tue, 06/25/2013 - 08:57 | 3690601 overmedicatedun...
overmedicatedundersexed's picture

seems demand for flying fire traps is high, almost as high as benz sedans with rogue reporters at the wheel.

Tue, 06/25/2013 - 08:58 | 3690606 buzzsaw99
buzzsaw99's picture

The Dreamliner eCONoME. How apropos.

Tue, 06/25/2013 - 12:09 | 3690650 CPL
CPL's picture

The Hindenburg was sold the exact same way.

Until the real cost of the device was understood.

Tue, 06/25/2013 - 09:00 | 3690612 CrashisOptimistic
CrashisOptimistic's picture

The ten yr yield did uptick 2 bps on the news.

Tue, 06/25/2013 - 09:02 | 3690618 fonzannoon
fonzannoon's picture

It's baffling. In 2 days they have thrown Hilsenrath, Fisher etc. etc. at it on top of every bond fund manager and here we sit at 2.55%. Wait till the new home sales data comes out hot.

Tue, 06/25/2013 - 09:14 | 3690674 CPL
CPL's picture

That because everyone loves paying more for borrowed money on a well engineered hut obviously.

Oh wait...no.

 

But yes, the numbers will be 'awesome' but nobody will care.  Because nobody should have a vested interest in the markets or their derivatives by this point after five years of insane economic levity.  All signs point to rent or buy outright (if a good deal) and get every penny you have in the bank out except basic expenses.

Tue, 06/25/2013 - 09:16 | 3690695 Its Only Rock N Roll
Its Only Rock N Roll's picture

Clearly the markets are addicted to cheap credit.  Look at all the deals that have been pulled recently.  Here in IL we are supposed to bring a huge GO deal Wednesday.  Can't wait to see if they can price it all or pull it do to "market conditions". 

http://www.reuters.com/article/2013/06/24/georgia-bonds-postponed-idUSL2N0F00VM20130624

http://www.reuters.com/article/2013/06/24/usa-illinois-bonds-idUSL2N0EX1B820130624

First time in a long time high yield corp deals were pulled late last week and Monday...due to "market conditions"

Fed doesn't want this and will pull out all the stops to save the bond market.  It has to or its game over right now. 

Tue, 06/25/2013 - 09:03 | 3690625 Stoploss
Stoploss's picture

Oh, so the entire global economy rides on...

Boeing..

Well, that's just fucking great.

Tue, 06/25/2013 - 09:19 | 3690715 SheepDog-One
SheepDog-One's picture

Boeing Shitliner will save us all!

Tue, 06/25/2013 - 09:04 | 3690628 Headbanger
Headbanger's picture

I guess it's all the increasing demand for air travel by former NSA contractors doing it.

Tue, 06/25/2013 - 09:08 | 3690648 GMadScientist
GMadScientist's picture

Let's hear it for cheap Norwegian airlines beefing up...it's the last demand we'll see for awhile.

Tue, 06/25/2013 - 09:15 | 3690688 adr
adr's picture

It's still all seasonally adjusted out of someone's ass right?

I'll have my company put in a giant order for Christmas lights next month. That should be good for at least a 2.5% seasonal adjustment.

I think you'll see unbelievably good housing numbers to cover Ben's ass. The bond market might be completely manipulated right now to bring housing demand forward. Better buy now before rates go up.

Nothing is real, its all bullshit. We're just powerless and along for the ride. Pilot 1 says we need to dive to have a chance of surviving the crash landing. Pilot 2 says we need to cut the power and glide. Either way we crash.

Tue, 06/25/2013 - 09:17 | 3690697 SheepDog-One
SheepDog-One's picture

Sucker in some rubes this morning, then beat em up on the rigged machines. Too easy!

Tue, 06/25/2013 - 09:21 | 3690727 SheepDog-One
SheepDog-One's picture

LOOK! We're above 0.0%! OMG it's a miracle we're recovered BUY BUY BUY!!!

I don't even recognize the world I live in anymore.

Tue, 06/25/2013 - 09:25 | 3690749 thismarketisrigged
thismarketisrigged's picture

of course the orders beat. they will always make the number low enough so that the expectations are easy to beat, when in reality the number stinks.

 

thank god we have daily some jackass, whether its from the pboc, the fed, the ecb, whomever it is always ready to spew some bullshit to save the markets from free falling.

 

all these people should be shot who do this shit.

Tue, 06/25/2013 - 09:28 | 3690758 Croesus
Croesus's picture

5 Keys to Understanding Gubmint Data Revision, and What They Mean to You:

1.       Unemployment is DOWN, will be revised upwards later.

2.      Inflation is DOWN, will be revised upwards later.

3.       Manufacturing data is UP, will be revised lower, later.

4.       The economy is getting BETTER, will be worse later.

5.       Housing is UP, will be down later.

 

Translation for Jim Cramer’s audience:

Bullish for Stocks! Buy MOAR! (cue Cramer hitting his annoying buttons), and screaming that you need to buy now, or else you’re a sucker who’s going to miss out on all the great returns.

 

Translation for Rick Santelli’s audience:

How fucking dumb do they think people are? (cue Rick Santelli throwing a waste basket, followed by a shocked Wall St. mouthpiece). Don’t you want to bet on tomorrow, instead of today? Today’s money is harvested by people who took positions yesterday, not today. So, bet on: higher unemployment, higher inflation, a worse manufacturing picture, a worse economy, and a real estate market heading for the crapper (again).

 

Tue, 06/25/2013 - 09:47 | 3690830 nantucket
nantucket's picture

back in January Boeing had a month with just two planes ordered (reported on ZH, link here):

http://www.zerohedge.com/news/2013-02-08/boeing-new-aircraft-orders-impl...

but now they get a lot of orders and it's considered bullshit.  too effin funny.  oh wait, it's a lumpy series of data.

Tue, 06/25/2013 - 09:44 | 3690836 Petrus Romanus
Petrus Romanus's picture

Boeing? Fuck that, I'm waiting for an Iplane or perhaps Google airlines. That would be something you can hang your hat on and breathe easy!

 

Let's go economy, up up and away!

Tue, 06/25/2013 - 10:13 | 3690956 sudzee
sudzee's picture

All this great news will surely implode the bond market.

Tue, 06/25/2013 - 10:32 | 3691006 thunderchief
thunderchief's picture

I know a few things about Boeing and Airbus. 

Airbus is like a girl that always needs the finner touches. Their brakes always heat up on taxi out, and they always throw up these ECAMS, like a bitch in heat. 

Boeing is tough and rugged.  Boeing still uses the Yoke, while Airbus has the side stick, even though it was the Gen Dynam. F-16 that came out with the first fly by wire side stick design.

Both of these companies are one or two bad designs away from being completly screwed by the other.  Airbus almost killed themselves with the A-340-500, which is a cadalac to fly, but a gas eating pig.  The 777 destroyed it.

Airbus has the a-320, fly by wire, and quite revolutionary for its time, but Boeing just kept stretching and pulling and twisting the 737 (1960's tech) until the difference in performance and economy stayed Apples and Oranges.  The are doing the same with the 747-8 against the A-380, just pumping enough of an old design out to hurt the A-380 orders.

The 787 was designed to replace the 757/767, which a few decades ago was a huge market.  The problem is the market has changed( the 767/757 wiped out the DC-10/L-1011 market which no longer really exists). 

Now its all about big twin engine fuel efficient machines that can fly from any point in the world to another without refueling, like the 777.  Up to now the 777 blows away everything on the market(we will see with the A-350). 

Boeing needs to roll out the 777X fast or they are in deep Kim Shit.  They also better stretch that 787 as fast as they can.

Ultamitly, I think the winner will be the first manufacturer to produce a flying wing (Think Boeing B-2) and takes this business to the next level, just like the 777. 

If you want my personal opinion,  Boeing has always made the best, most practical and robust aircraft.  The 777 is a battle wagon that cannot be beat.  But as I said at the beginning, these manufacurers are about two designs away from a crisis, or total dominance.

As far as the A-380 is concerened.  Its a great machine, except for a few things.  It's a gas eating pig like the A-340-500, and when you fill it up (which you have to, both decks, to really make money) you cannot carry any extra cargo in the belly.  Yep, all those passanger bags fills up the A-380 cargo bays, and anyone in the airline business knows cargo pays the bills.  European design.

So lay off on Boeing, you girly Airbus pussies.

Tue, 06/25/2013 - 12:01 | 3691410 Turin Turambar
Turin Turambar's picture

LOL, this seems to me to be the airline version of automotive channel stuffing.

Do NOT follow this link or you will be banned from the site!