Orders for durable goods ticked up slightly for November, and a number of exchange traded funds (ETFs) could be affected by the news. The increase was small – only 0.1% – and well short of the hoped-for 2.2%. It was, however, the first increase in four months, so we’ll take the good news where we can get it.
According to Jeannine Aversa at the Associated Press, there was increased demand for electrical equipment, appliances, automobiles, commercial airplanes and primary metals, including steel. Increases in those areas offset the lower demand for machinery, computers, electronics and defense aircraft.
Durable goods are defined as products that are expected to last at least three years.
The sales of U.S. goods to foreign buyers remains strong, thanks to the continuing weakness of the U.S. dollar.
Among the ETFs that could feel the effects of the report:
- Market Vectors Steel (SLX), up 87.8% year to date
- iShares Dow Jones US Aerospace & Defense (ITA), up 31% year to date
- Technology Select Sector SPDR (XLK), up 18% year to date
- iShares Dow Jones US Technology (IYW), up 18.1% year to date
The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.