{"id":207158,"date":"2024-05-24T11:00:00","date_gmt":"2024-05-24T15:00:00","guid":{"rendered":"https:\/\/ibkrcampus.com\/?p=207158"},"modified":"2024-05-27T02:51:24","modified_gmt":"2024-05-27T06:51:24","slug":"stocks-recover-on-downwardly-revised-inflation-expectations","status":"publish","type":"post","link":"https:\/\/www.interactivebrokers.com\/campus\/traders-insight\/securities\/macro\/stocks-recover-on-downwardly-revised-inflation-expectations\/","title":{"rendered":"Stocks Recover on Downwardly Revised Inflation Expectations: May 24, 2024"},"content":{"rendered":"\n

Equities are rebounding from yesterday\u2019s selloff with this morning\u2019s downwardly revised inflation expectations from the University of Michigan supporting investor optimism. Headline consumer sentiment for this month, meanwhile, was revised upward, which together with lighter price pressure projections is providing fuel to the soft-landing trade. Additionally, durable goods figures, released earlier in the morning, provided yet another signal of the manufacturing sector\u2019s comeback following yesterday\u2019s sizable PMI beats.<\/p>\n\n\n\n

Durable Goods Score Three-Month Growth Streak<\/strong><\/h2>\n\n\n\n

Durable goods orders grew for the third consecutive month in April, according to this morning\u2019s US Census Bureau publication. Last month\u2019s durable goods purchases rose 0.7% month-over-month (m\/m) despite forecasters anticipating a decline of 0.8%. April\u2019s growth decelerated slightly from 0.8% in March, however. In April, transactions were supported by most segments with computers, communications equipment, defense aircraft, automobiles and primary metals sporting m\/m progress of 3.9%, 3.3%, 2.5%, 1.5% and 1.3%. The electric equipment, machinery and fabricated metal products categories saw softer momentum, with sales rising less than 1% m\/m. Dampening some of the gains were the passenger aircraft and other segments, with declines of 8% and 0.2%. Nondefense capital goods excluding aircraft, an indicator of corporate capital expenditures, increased 0.3% m\/m, recovering from March\u2019s 0.1% decline.<\/p>\n\n\n\n

\"Durable<\/figure>\n\n\n\n

Consumers More Upbeat Than Previously Reported<\/strong><\/h2>\n\n\n\n

In a separate University of Michigan report, this month\u2019s consumer sentiment<\/a> headline figure was revised from the 67.1 level reported on May 10 to 69.1, while 1- and 5-year inflation expectations were adjusted downward from 3.5% and 3.1%, respectively, to 3.3% and 3%.<\/p>\n\n\n\n