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Durable Goods Orders Decreased More Than Expected

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Ahead of today’s opening bell, we’re seeing lots of moving parts in the stock market. The Federal Open Market Committee (FOMC) starts its two-day meeting on economic policy today (spoiler alert: tomorrow afternoon they will not change interest rates) joins Durable Goods Orders and Q4 earnings reports. Pre-market futures are mixed, with the Dow -14 points, the S&P 500 and Nasdaq +19 and +96 points, respectively, and the small-cap Russell 2000 -0.6 points.

Durable Goods Orders Drop Unexpectedly

We see a preliminary read on Durable Goods Orders for December — important, because these numbers are sure to be revised in the weeks ahead — that came in much lower than expected: -2.2% from the -0.5% analysts were looking for. The previous month’s -1.1% initially reported comes in at -2.0% this morning. It’s the weakest Durable Goods print since July of last year.

However, when we strip out Transportation orders on Durable Goods, we can clearly see where the weakness lay last month: +0.3% was in-line with estimates and a swing to the positive from the -0.1% posted for November. This is the best read since September. Non-Defense, ex-aircraft was also ahead of expectations: +0.5%, with the prior month’s upward revision 3x higher to +0.9% — the strongest single-month print in two years.

Q4 Earnings Roundup: BA, GM, RCL and More

When we take a look at Q4 earnings this morning, we can see where the Durable Goods print has lacked: Boeing ((BA - Free Report) posted a wider-than-expected negative earnings loss to -$5.90 per share versus -$3.22 anticipated — a huge downward shift from the year-ago’s loss of -$0.47 per share. This is the third-straight negative surprise in Boeing’s bottom line. Revenues, on the other hand, improved to $15.24 billion in the quarter from $15.19 billion anticipated — still a big drop from year-ago levels.

General Motors ((GM - Free Report) put together sizable beats in its Q4 report ahead of today’s open, with earnings of $1.92 per share outpacing expectations by +3.78% on revenues of $47.71 billion in the quarter — surging past estimates by +8.29%. Pre-market shares had been higher by +3% on the news, but have sunk back down -3% a half-hour ahead of the opening bell today.

Royal Caribbean ((RCL - Free Report) demonstrated earnings strength for its Q4 this morning, with $1.63 per share surpassing the $1.50 anticipated, and notably ahead of the $1.25 per share reported in the year-ago quarter. However, revenues of $3.76 billion in the quarter came in slightly below the Zacks consensus. Share are up +4.7% on the news in today’s pre-market, adding to the company’s +2% year to date.

JetBlue Airlines ((JBLU - Free Report) also outperformed estimates ahead of today’s open in the airline’s Q4 report, with negative earnings of -21 cents per share improving over the -30 cents expected, for a +30% positive surprise. Revenues of $2.28 billion outperformed expectations by nearly +1%. But weak guidance has sent shares lower in today’s pre-market by -11.6%, following the company’s +3% gain year to date. For more on JBLU’s earnings, click here.

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