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IBDvalueinvestin (99.66)

Almost had the Bears running for the Hills, until the economic data came out this morning.

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February 26, 2009 – Comments (3)

Damn it, when is this data gonna start turning for the better??

08:30  ECONX January Durable Goods -5.2% vs -2.5% consensus, prior revised to -4.6% from -3.0%





08:30  ECONX Jan Durable Goods ex-transportation -2.5% vs -2.2% consensus
Prior revised to -5.5% from -3.6%.
08:30  ECONX Initial Claims 667K vs 625K consensus, prior revised to 631K from 627K

 

3 Comments – Post Your Own

#1) On February 26, 2009 at 8:49 AM, IBDvalueinvestin (99.66) wrote:

Initial Jobless claims:

The week ending Feb. 21 totaled 667,000. That was up 36,000 from the prior week, and more than the 625,000 claims that were expected. Continuing claims now stand at 5.11 million. The consensus forecast called for 5.03 million claims after the prior week's reading showed 5.00 million continuing claims on file.

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#2) On February 26, 2009 at 9:02 AM, maxhoffa (< 20) wrote:

those numbers are bad.

 

but i don't think the market reacts to numbers anymore.  wouldn't be surprised to see the market run up another 10% or so before giving it back again.  

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#3) On February 26, 2009 at 9:12 AM, IBDvalueinvestin (99.66) wrote:

Analysts are now predicting the economy contracted at a staggering pace of 5.4 percent in the final three months of last year. That would be weaker than the 3.8 percent annualized drop estimated a month ago.

Orders for big-ticket goods weaker than expected

Orders for manufactured goods plunge in Jan.; posts record 6 straight months of declines

Jeannine Aversa, AP

Economics Writer

Thursday February 26, 2009, 8:50 am EST

WASHINGTON (AP) -- Manufacturers saw orders for big-ticket goods plunge by a bigger-than-expected 5.2 percent in January as global economic troubles cut into demand from customers both in the United States and abroad. Related Quotes

The latest report on U.S. factory activity, released by the Commerce Department on Thursday, showed that orders had fallen for a record six straight months. The previous record -- a four-month-stretch of declines -- came in 1992.

The weakness in January was broadly based with orders for autos, metal products, machinery, computers and electrical equipment and household appliances all posting declines.

Not only was January's drop steeper than the 2.5 percent decline analysts were expecting, but activity in December turned out to be much weaker. Updated figures now show a 4.6 percent drop in orders, versus a 3 percent decline previously estimated.

Manufacturers have trimmed production and payrolls as they race to cut costs to survive the economic fallout. The collapse of the U.S. housing market has especially crimped demand for all kinds of building materials and equipment, as well as a range of consumer goods, including furniture, carpet and household appliances.

Consumers at home and abroad are cutting back, which is hurting U.S. manufacturers.

The department's report showed that orders for autos dropped 6.4 percent in January, from the previous month. Orders for primary metals -- a category that includes steel -- fell 4.6 percent. Demand for fabricated metal products declined 1.1 percent.

Machinery orders went down 2 percent. Orders for computers and related products plunged 16 percent. Orders for electrical equipment, household appliances and other components fell 6.1 percent.

Stripping out volatile transportation orders, which can bounce around a lot from month to month, all other orders sank 2.5 percent in January, also the sixth straight monthly decline.

The rough economic environment has especially hurt U.S. automakers. Pushed to the financial edge, Detroit's General Motors Corp. and Chrysler LLC are restructuring operations in hopes of securing billions more in federal aid.

The current January-to-March quarter is shaping up to be another very feeble period for the economy. When the government releases its updated figure for the economy's performance at the end of last year, it is expected to be much worse. Analysts are now predicting the economy contracted at a staggering pace of 5.4 percent in the final three months of last year. That would be weaker than the 3.8 percent annualized drop estimated a month ago.

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