Durable goods orders continued their recovery last month following struggles at Boeing that have weighed on aircraft purchases. March durable goods orders grew 2.6% month over month (m\/m), narrowly beating expectations of 2.5% and February\u2019s 0.7% rate. Orders excluding transportation rose 0.2% m\/m, lighter than forecasts of 0.3% but higher than the previous month\u2019s 0.1%. Capital goods orders excluding defense and aircraft, an indicator of business investment, lost a little momentum, gaining 0.2% m\/m, exactly as projected but down from February\u2019s 0.4%.<\/p>\n\n\n\n Manufacturing orders experienced strength across categories. Leading the charge last month were purchases of passenger aircraft, defense aircraft, automobiles and their parts, and other durable goods; the segments achieved m\/m increases of 30.6%, 2.8%, 2.1% and 0.6%. Orders for the fabricated metal products, communications equipment, machinery and electrical equipment and appliances segments gained at more tempered levels between 0.1% and 0.2%. The computer and primary metals components did offset some of the progress though, with figures declining 3.9% and 0.5% m\/m.<\/p>\n\n\n\n A glut of industrial semiconductors appears to have moderated while in other economic areas, travel and consumer spending are still strong. Consumers are also flocking to streaming entertainment while Tesla struggles with declining sales. Those are a few themes discussed in the following earnings call highlights:<\/p>\n\n\n\n Markets are mixed with bifurcated action across equity sectors, the yield curve, currencies and commodities. For equities, a positive reaction from Tesla\u2019s current-quarter guidance and plans for a lower priced model is driving up the tech-heavy Nasdaq Composite Index, with the benchmark up 0.3%. That\u2019s about it though, as far as bullish equity action at the index level, as the Russell 2000, Dow Jones Industrial and S&P 500 indices are lower by 0.7%, 0.3% and 0.2%. Sectoral breadth is mixed with consumer discretionary, technology and real estate leading on the upside; they\u2019re up 1%, 0.5% and 0.3%. Leading the laggards lower are the industrials, healthcare and energy segments, which are down 1.2%, 0.6% and 0.5%. Treasuries are seeing split movements as well, with the 2- and 10-year maturities trading at 4.94% and 4.65%. The former is unchanged while the latter is up 5 basis points (bps). The dollar is positive with its index gaining 19 bps and trading at 105.88. The greenback is gaining relative to all of its major developed market currencies, including the euro, pound sterling, franc, yen, yuan and Aussie and Canadian dollars. Crude oil is down despite a decline in US inventories and elevated geopolitical tensions between Washington and Beijing. WTI is lower by 0.7%, or $0.61, to $82.72 per barrel. Gold and copper are up though, with prices gaining 0.1% and 0.7%, respectively, during the session.<\/p>\n\n\n\n Tomorrow\u2019s pivotal GDP report comes as market participants are hoping for a soft number that would lead to rate cuts sooner rather than later. For tomorrow\u2019s report, however, we\u2019re expecting a stronger-than-projected figure of 2.7% versus the consensus estimate of 2.5%. Ferocious consumer spending strength, as illustrated by Visa earnings, airline guidance and other indicators, is likely to deliver the upside beat, which will likely be followed by a move higher in bond yields. For equities, however, investors can digest strong GDP data in two distinct ways. It would be great for revenue growth prospects but bad for the timing and extent of rate cuts.\u00a0<\/p>\n\n\n\n![\"Durable](\"\/campus\/wp-content\/uploads\/sites\/2\/2024\/04\/Picture1-23.png\")
<\/figure>\n\n\n\nOutlook Brightens for Semiconductors and Consumer Spending<\/strong><\/h2>\n\n\n\n
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Divergence in Winners and Losers Widens<\/strong><\/h2>\n\n\n\n
Tomorrow\u2019s GDP Data Could be Pivotal<\/strong><\/h2>\n\n\n\n