Durable goods orders, which range from toasters to aircraft, increased 3.3 percent last month, the Commerce Department said on Friday. The department also revised prior readings for orders to show a smaller decline in March than previously estimated… economists expect the austerity will sap strength from the economy as the year progresses. In April, shipments for capital goods in the defense sector fell 5.6 percent.” Story from CNB at…
A good bit of the gain was due to aircraft orders as Boeing got orders for 51 aircraft in April vs. 29 in March.
Chart from ZeroHedge at…
Press release from ATA at…
"Does the change in real GDP in year one predict a change in the S&P 500 in the next year?"
“…So, is it predictive? In a word, "No." We found a very weak correlation of 6.3% and an even lower R-squared of 0.004. What about staggering by two years? The results were slightly better, but we still found virtually no predictive power. Correlation improved to only 8.7% and r-squared remained very low at only 0.007.”
Friday, the S&P 500 closed down a point 1650 (rounded).
The NTSM system sold at 1575 on 16 April. (This is just another reminder that I should follow the NTSM analysis and not act emotionally – I am under-performing my own system by about 2%!)