U.S. Factory Orders Break 4-Month Winning Streak

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.

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.

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