Durable Goods Orders
July's Durable Goods Orders will be released by the Commerce Department early Friday morning, giving us an important indication of manufacturing sector strength. This report tracks orders at U.S. factories for big-ticket items, or products that are expected to last three or more years such as appliances, electronics and airplanes. Analysts are expecting to see a drop of 0.6% in new orders, pointing towards manufacturing sector weakness. This data is known to be quite volatile from month to month, so a decline of this size doesn't raise too much concern about the economy. However, a much larger decline is good news for the bond market and mortgage rates as it means manufacturing activity is softer than many had thought. A secondary reading the excludes more volatile transportation-related orders is expected to rise 0.4%. The softer the reading, the better the news it is for the bond and mortgage markets.