U.S. orders for manufactured goods, or factory orders, fell by 3.7% month-over-month in April, breaking a 4-month winning streak and falling below the expectation for a 3.2% decline. That marked a stark contrast compared to March when orders increased by 3.4%. Excluding transportation, which is a volatile sector, April orders fell by 0.5% compared to the expectation for a 0.2% rise.
Claim 30% Off TipRanks
- Unlock hedge fund-level data and powerful investing tools for smarter, sharper decisions
- Discover top-performing stock ideas and upgrade to a portfolio of market leaders with Smart Investor Picks
Industrial Stocks Face Headwinds as Manufactured Goods Orders Fall
The orders update spells bad news for industrial stocks, such as Caterpillar (CAT) and 3M (MMM), as these companies derive much of their revenue from selling products to use in the manufacturing process. The impact of tariffs pushing up the prices of U.S. manufactured goods could also be a contributing factor to the fall.
Stay up to date on the latest breaking news with TipRank’s Stock Analysis and News feed.
