Following this morning's disappointing tumble in ISM New York (with 5 of the 6 components plunging), Factory Orders tumbled 0.4% MoM in April (against expectations of a modest 0.1% decline). This comes after March's exuberance-inspiring upwardly revised 2.2% MoM surge (which ended a 7 month streak of MoM drops). Down 6.4% against 2014, this is the 6th month in a row of YoY declines in Factory Orders - something not seen previously outside of a recession. Stocks love this terrible news (for now).
Here's what we said going in...
NY ISM not bad enough to support stocks. Factory orders will have to be really ugly
— zerohedge (@zerohedge) June 2, 2015 [3]
And sure enough, it was dismal....
Recession?
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On a MoM basis, the picture is even worse... 9 misses in the last 10 months... 8 negative prints in the last 9 months
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Charts: Bloomberg
