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Mixed Data Release Regarding Durable Goods, Unemployment Claims

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Markets react positively to data release

The US Market opened on a mixed note on February 25, 2016, as the S&P 500 Futures Index was trading flat at 12:30 PM EST. NASDAQ futures fell by 0.42%, and the Dow Jones Industrial Average rose by 0.30%.

The US Dollar Index, which measures the strength of the US dollar against other major currencies, rose to a high of 97.69 in early trading after the release of the durable goods data. The US Dollar Index was trading flat as of 12:30 PM EST.

The trend in the Market in the second half was significantly dictated by the rise in crude oil prices, and it rose by 2.5% at ~3:00 PM EST. For a detailed analysis of the crude oil markets, please refer to What Are the Long-Term Crude Oil Price Forecasts?

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Durable goods rose to a multiyear high

The United States Census Bureau published the durable goods data for January 2016 on February 25, 2016. The durable goods new orders rose by 4.9%, with the transportation equipment sector and the communication sector’s new orders rising by 11.5% and 9.6%, respectively.

The Department of Labor published the weekly unemployment claims, which came in close to Market expectations as the number of unemployed people rose by 10,000 to 272,000. The below-300,000 increase in the weekly unemployment figures has lasted for nearly a year. The US House Price Index for December 2015 rose by 0.4%.

Impact

Looking at the performance of the major ETFs, the SPDR S&P 500 ETF (SPY) rose by 0.23% on February 25, 2016, at 12:30 PM EST after the strong durable goods data. The SPDR Dow Jones Industrial Average ETF (DIA) rose by 0.3%.

Among the currency-related ETFs, the WisdomTree Bloomberg US Dollar Bullish ETF (USDU) and the PowerShares DB US Dollar Bullish ETF (UUP) were seen trading on a flat note in early trading.

While the crude oil–related United States Oil ETF (USO) rose by 2.2%, the ProShares Ultra Bloomberg Crude Oil ETF (UCO) rose by 1.1% in the second half of trading on February 25, 2016.

The telecom sector had a huge boost in the durable goods data, but the telecom-related Vanguard Telecommunication Services ETF (VOX) was trading flat.

Crude oil prices had a positive effect on crude-related stocks such as Anadarko Petroleum Corp (APC) and Newfield Exploration Company (NFX), which rose by a significant 3.5% and 4.8%, respectively, at 3:00 PM ET.

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