This is an interesting tidbit from Barron's as related to reported statistics (by the Commerce Dept.) for durable goods, which was up 2.7%. Transportation accounted for the major junk of the gain.
"The shocker came in the form of orders for capital goods that business needs to expand and modernize, including, of course, all the magical implements that tech provides as well as the big bulky things that rust in the rain. The usual definition of capital goods is things that are destined to last at least three years (which seems like a lifetime these days). Orders for those precious items, once you knock off the wayward defense and transportation orders, dropped a humongous 6.9% and did so across a broad slice of the economy."
Abelson, Alan, 2011. Crude awakening. Barron's, Feb. 26.
Though this is just one month of data, the implications are somewhat concerning for 2nd quarter GDP.
Perhaps this is the reason Tech stocks took a dive this week.
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