'Hard' Data Dumps - Factory Orders Drop In April As Durable Goods Tumble Most In 14 Months

Tyler Durden's picture

After 4 straight months of gains, Factory Orders declined 0.2% MoM in April with Durable Goods New Orders tumbling 0.5% (final April print) - the worst drop since Feb 2016.

Despite notable upward revisions for March (from +0.2% to +1.0%), April Factory orders dropped 0.2% MoM (in line with expectations), breaking the recent streak of improvements.

 

Worse still for the 'hard' data hopers, the final print for April's Durable Goods New Orders tumbled 0.5% MoM - the biggest drop since Feb 2016 (amid global recession fears)...

 

Hard data is now at its weakest since May 2016 and Soft data has dropped to 6-month lows. Not what Mr Trump (or Mr Market) was hoping for.

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Joe Davola's picture

Who needs durable goods, can't we just get by using the digital twin?

peopledontwanttruth's picture

LOL hold on this afternoon we'll hear surge in orders. Just like the draw-boost in inventory on crude. Everything coming out is lies and mental manipulation.

None of these matter, we're headed to a 15 foot thick concrete wall at terminal velocity on every front.

Racer's picture

Oh that's good news for the "markets" - no interest rate hikes...

BTFATH

spastic_colon's picture

must....continue.....to.....baffle

 

as the warning voice says "pull up....pull up"

besnook's picture

fleeting evil is much more fun. ask the banksters.

Consuelo's picture

 

 

I wonder what these 'durable goods' are, and who's ordering them...?

 

Washers & Dryers for FAANG employees...?   I mean after all, aren't they the lucky ones keeping that third wooden leg underneath the market...?

lester1's picture

"This is just noise. We're going to raise rates anyway to crash the economy and fuck President Trump so Democrats can make a comeback in 2018."

 

- Janet Yellen

NihilistZerO___'s picture

Problem is the Senate map does not favor the Dems and a wave election in congress isn't that likely.  And unless their timing is incredibly precise, which is unlikely, higher rates will HELP the majority of voters.  Employment can't get much worse and popping Housing Bubble 2.0 puts money in every working person's pocket as rents and mortgages go down.

The Fed has less control over this correction than 2008.  Less tools with rates already very low.  Less available players as few "retail" investors available in stocks or housing.  Sure they'll drop rates again to keep the machine from seizing up, but maintaining these asset values isn't in the cards.  Especially in Housing. We have all the problems of Housing Bubble 1's peak prices with NONE of the GDP benefits.  That must be corrected to keep the machine going.

Hugh G. Rection's picture

 

"I gave Obama $10 trillion, and all I got was this lousy T-shirt"

A. Boaty's picture

Too many goods not so durable, i.e., planned obsolescence.

GodHelpAmerica's picture

Fed playing with the long end now? Every piece of information that came out today was bullish for long bonds....and they sell off...

Fed worried about flattening yield curve perceptions...? Nothing surprises me anymore...

GodHelpAmerica's picture

Fed playing with the long end now? Every piece of information that came out today was bullish for long bonds....and they sell off...

Fed worried about flattening yield curve perceptions...? Nothing surprises me anymore...

wholy1's picture

The [being decimated] "middle class [jobless] 'merkaan plebs' " are tapped out.  THANK YOU int'l corporate masters !

decentralisedscrutinizer's picture

 

Almost all the world’s economic and political problems revolve around the hegemony of a global corporate cartel, which is headquartered in the US because this is where their dominant military force resides. The US Constitution is therefore the “kingpin” of an all-inclusive global financial empire. These fictitious entities now own the USA and command its military infrastructure by virtue of the Federal Reserve Corporation, regulatory capture, MSM propaganda, and congressional lobbying.

 

The Founders had to fight a bloody Revolutionary War to win our right to incorporate as a nation – the USA. But then, for whatever reason, our Founders granted the greediest businessmen among them unrestricted corporate charters with enough potential capital & power to compete with the individual states, smaller sovereign nations, and eventually to buy out the USA itself. The only way The People can regain our sovereignty as a constitutional republic now is to severely curtail the privileges of any corporation doing business here. To remain sovereign we have to stop granting corporate charters to just any “suit” that comes along without fulfilling a defined social value in return. The "Divine Right Of Kings” should not apply to fictitious entities just because they are “Too Big To Fail”. We can't afford to privatize our Treasury to transnational banks anymore. Government must be held responsible only to the electorate, not fictitious entities; and banks must be held responsible to the government if we are ever to restore sanity, much less prosperity, to the world.

 

It was a loophole in our Constitution that allowed corporate charters to be so easily obtained that a swamp of corruption inevitably flooded our entire economic system. It is a swamp that can't be drained at this point because the Constitution doesn’t provide a drain. This 28th amendment is intended to install that drain so Congress can pull the plug ASAP. As a matter of political practicality we must rely on the Article 5 option to do this, for which the electorate will need overwhelming consensus beforehand. Seriously; an Article 5 Constitutional Convention is rapidly becoming our only sensible option.

 

This is what I think it will take to save the world; and nobody gets hurt: 28th Amendment

 

Corporations are not persons in any sense of the word and shall be granted only those rights and privileges that Congress deems necessary for the well-being of the People. Congress shall provide legislation defining the terms and conditions of corporate charters according to their purpose; which shall include, but are not limited to:

 

1, prohibitions against any corporation;

 

a, owning another corporation,

 

b, becoming economically indispensable or monopolistic, or

 

c, otherwise distorting the general economy;

 

2, prohibitions against any form of interference in the affairs of;

 

a, government,

 

b, education,

 

c, news media, or

 

d, healthcare, and

 

3, provisions for;

 

a, the auditing of standardized, current, and transparent account books, and

 

b, the establishment of a state and municipal-owned banking system

 

c, civil and criminal penalties to be suffered by corporate executives for violation of the terms of a corporate charter.

    

what happened to my rights's picture

I'd try massive tax credits or benefits for corporations voluntarily spinning off and/or splitting up, and separating boards of directors.  The smaller they are, the bigger the bigger the credits for years.  The tax system should provide massive tax credits for large corporations or taxpaying group(s) that do not pay anyone more than 100 times the lower 50% of their employees.  Based upon my limited understanding of how our non contsitutional wealth transfer system works, we could do this without changing the constitution.  Congress could theoretically meet tomorrow and do this without any constitutional amendments, I think.  I know there would be abuses and adminstrative cots, but wouldn't it be worth a try?  It'll never happen, though.

I think you hit the nail on the head about our founders.  For whatever reason they wanted limited centralized government, but left corporate size wide open.  In the end, they all want power and control and competative advantage and as long as our tax system and department of justice awards these practices, we're pretty much screwed.    

decentralisedscrutinizer's picture

Not even close. You're either a hopeless corprorate thrall or hypnotized. You're screwed.