April US Durable Goods New Orders Post Much Larger-Than-Expected Rise

New orders for US durable goods rose by 7.9% in April following a smaller increase of 1.3% in March, well above the expectations for a 4.0% increase in a survey compiled by Bloomberg.

Excluding a 21.5% increase in transportation orders, new orders would have been up 1.1% in April after a 1.1% increase in March. Expectations were for a 0.5% gain.

Durable goods shipments rose by 0.5% after a 0.8% increase in March. Excluding transportation, shipments were still up 0.5% after a 0.8% increase in the previous month.

Nondefense capital goods orders excluding aircraft fell by 1.1% in the month, while shipments increased by 0.4%.

April US Personal Income Flat, Spending Growth Slows, Annual Price Growth Accelerates

Personal income held steady in April following March's 0.5% gain, below an expected 0.4% gain in a survey conducted by Bloomberg.Personal consumption expenditures were up 0.5%, as expected after 1.0% gain in March. After adjustment for inflation, real PCE rose by 0.1% after a 0.3% increase in March, as expected.The PCE price index rose by 0.4%, below the 0.5% gain expected, lifting the year-over-year rate to 3.8% from 3.5%. The price index rose by 0.7% month-over-month in March.The core PCE price index increased by 0.2%, below the 0.3% gain expected and following a 0.3% gain in March. The year-over-year rate accelerated modestly to 3.3% from 3.2% in the previous month.The monthly report on personal income and spending is released by the Bureau of Economic Analysis about one month after the period it is measuring. Personal income is broken down into various categories, with wages making up the largest portion. Spending is reported in two ways-before and after adjustment for inflation movements.The price measures in the report are closely watched by the Federal Reserve, particularly the year-over-year. Faster consumption growth is usually a positive for stocks but combined with soft income readings could suggest consumers are overextending. Bonds are sensitive to the price measures if the pace is above the Federal Reserve's 2% target.

US Initial Jobless Claims Rise in Week Ended May 23

US initial jobless claims rose to a level of 215,000 in the week ended May 23 from an upwardly revised 210,000 level in the previous week, compared with expectations for a level of 211,000 in survey of analysts compiled by Bloomberg.The four-week moving average rose by 6,250 to 209,000 after decreasing by 1,250 to a level of 202,750 in the previous week.Insured jobless claims increased by 15,000 to 1,786,000 in the employment survey week ended May 16.Insured claims were at a level of 1,776,000 in the employment survey week ended April 18.The weekly initial jobless claims data released by the US Labor Department measures filings for unemployment insurance benefits. Initial filings are reported through the previous Saturday, while those already on benefits are measured with a one-week lag.A decrease in claims suggests a stronger labor market, a positive for the US economy and stocks, but a negative for bonds as it suggests wage growth that could lead to inflation.

April US Durable Goods New Orders Post Much Larger-Than-Expected Rise

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