U.S. durable goods orders dropped 2.0% in October U.S. durable goods orders dropped 2.0% in October from an upwardly revised 4.1% September increase (was 3.8%). Transportation orders fell 5.9% after jumping 13.0% in September. Excluding transportation, orders dipped 0.1%. Nondefense capital goods orders excluding aircraft dropped 1.2% after a 1.4% September decline (revised from -1.1%). Shipments rose 0.2%. Nondefense capital goods shipments excluding aircraft fell 0.2%. Inventories were up 0.3%. The inventory/shipment ratio was steady at 1.64 (September revised down from 1.65). Though the headline orders decline pretty much met expectations, the components of the report were disappointing.
U.S. weekly jobless claims preview: U.S. weekly jobless claims preview: initial jobless claims for the Nov-23 week are expected to see a 7k rise to 330k (median 330k). The 21k U.S. initial claims drop to 323k in the BLS survey week of November, which was also the Veteran's Day weekend, followed a 3k rise to 344k to leave a 40k six-week drop from the 373k recent-peak in the first week of October. The drop left claims back in line with the downward trend through the first half of 2013, though the decline may simply reflect the start of holiday distortions, with a Veteran's Day impact in advance of Thanksgiving.