Shares of industrial and transportation companies rose slightly after relatively strong durable-goods orders data.
New orders for durable goods were unchanged at a seasonally adjusted $273.5 billion in July compared with the prior month, the Commerce Department said.
Excluding defense, new orders were up 1.2%, a sign that U.S. demand for items such as refrigerators and autos remains relatively strong, despite fears about the impact of Federal Reserve rate increases.
“I have a lot of faith in the Fed being able to raise rates and do the things it needs to do without creating a sharp recession,” said Oliver Pursche, senior vice president at financial advisory Wealthspire.
While a modest slowdown in economic growth in response to rising rates is likely, that would be unlikely to have a devastating effect on markets, Mr. Pursche said.
Write to Rob Curran at [email protected]
