April 26, 2018
Total orders are strong in the durable goods report, getting another outsized lift from aircraft, but growth underneath slowed in March including for capital goods. Trade data were also released and imports of goods slowed sharply, helping to lower the deficit in March and offset deep deficits in the prior two months. The day's data also include mixed results on inventories with wholesale up but retail down. After all the dust has settled, expectations are steady for moderate growth in tomorrow's first-quarter GDP report.
Stocks continue to look volatile with the Dow up 1.0 percent to 24,322. Bargain hunting may have showed up after several rough days for bonds as the 10-year yield fell 5 basis points and is back under 3 percent at 2.98 percent. Despite the dip in yields, the dollar is once again showing strength with the dollar index up 0.4 percent to 91.58.