NEW YORK (Reuters) - Demand for long-lasting manufactured goods dropped by the most in three years in March and a gauge of business spending plans fell, suggesting factory activity lost momentum as the first quarter ended.
COMMENTS:
VASSILI SEREBRIAKOV, SENIOR CURRENCY STRATEGIST, WELLS FARGO, NEW YORK:
"The durable goods data is known to be a volatile series. A deviation from consensus is not uncommon. But looking at the overall picture, the breakdown of the report mitigates the negative headlines. Overall, the report doesn't really change the overall picture and still supports moderate U.S. growth. We did get a move lower in the dollar against the yen and euro, but that should be short-lived because we have the Fed this afternoon."
JIM AWAD, MANAGING DIRECTOR AT ZEPHYR MANAGEMENT IN NEW YORK
"Far worse than expected. Futures were up strongly on Apple, but this will create doubts about the strength of the recovery and reinforce the bears. Today will be a tug of war between doubts about economic strength and good earnings from several companies."
MARKET REACTION
STOCKS: U.S. stock index futures trim gains.
BONDS: U.S. Treasury debt prices pare losses.
FOREX: Dollar extends losses versus the yen.
(Americas Economics and Markets Desk; +1-646 223-6300)