US Durable Goods Orders (Excerpt)

I was certainly pleased by the underlying strength of January’s durable goods orders excluding the volatile transportation index. It suggests that companies did curtail their capital spending plans late last year as a result of fiscal cliff fears. I argued that too many investors were focusing on the downside of going over the cliff and ignoring the upside if the cliff was averted, as we expected.

I am especially impressed to see that nondefense capital goods orders excluding civilian aircraft jumped to a new cyclical high during January. The recent surge was led by new orders for machinery.

Today's Morning Briefing: Dancing with Bulls. (1) Singing in the rain. (2) The view from Boston on retail investors. (3) Draghi may actually have to do whatever it takes. (4) Bernanke’s nightmare scenario. (5) A fourth anniversary for the bull? (6) Bernanke remains dovish. (7) Economy remains bullish. (8) Capital spending rebounds after fiscal cliff averted. (9) Good for Industrials that make machinery. (More for subscribers.)