Orders from U.S. factories declined 1.3% in October to $604.8 billion, from $612.9 billion in September. Economists polled by The Wall Street Journal were expecting a 1.2% decrease. ...

Economic Indicators - Consumer price inflation for September and Consumer Sentiment for December will be released on Friday [1] - Delayed Personal Income and Outlays for September are expected to show a 0.4 percent increase [3] - Consumer Sentiment for December has a consensus estimate of 52.0, up from 51.0 in the prior month [3] - Factory Orders for October will also be released, with the previous month showing a 0.2 percent increase [3] - Consumer Credit for October is anticipated to increase by $9.4 billion, down from $13.1 billion in the prior month [4] Market Performance - As of 7.25 am ET, Dow futures gained 45.00 points, S&P 500 futures added 12.00 points, and Nasdaq 100 futures were up 82.75 points [2] - Major U.S. averages finished mostly up on Thursday, with Nasdaq rising 51.04 points (0.2 percent) to 23,505.14 and S&P 500 inching up 7.40 points (0.1 percent) to 6,857.12 [2] - Asian stocks ended mixed, with China's Shanghai Composite index surging 0.70 percent to 3,902.81 and Hong Kong's Hang Seng index up 0.58 percent at 26,085.08 [4][5] - European shares are trading positively, with the CAC 40 Index gaining 29.56 points (0.36 percent), the German DAX adding 154.34 points (0.65 percent), and the Euro Stoxx 50 Index up 23.29 points (0.41 percent) [6]

Economic Activity - German factory orders surged in October [1] - This surge boosts the idea that Europe's biggest economy eked out growth in the final quarter [1]

Group 1 - The dollar index rose by +0.17% after recovering from a 5-week low, driven by a drop in US weekly initial unemployment claims to a 3-year low, indicating a stronger labor market [1][4] - The dollar initially fell due to a rally in the yen and expectations of a Fed interest rate cut at the upcoming FOMC meeting [2][5] - The markets are pricing in a 91% chance of a 25 basis point cut in the fed funds target range at the next FOMC meeting on December 9-10 [5] Group 2 - US November Challenger job cuts increased by +23.5% year-on-year to 71,321, which is the highest for November in three years, but lower than the expected +48.0% [4] - US weekly initial unemployment claims unexpectedly fell by -27,000 to a 3-year low of 191,000, contrasting with expectations of an increase to 220,000 [4] - US September factory orders rose by +0.2% month-on-month, slightly below the expected +0.3% [4] Group 3 - President Trump plans to announce his selection for the new Fed Chair in early 2026, with Kevin Hassett seen as a likely candidate, which could be bearish for the dollar due to his dovish stance [3] - Comments from ECB Executive Board member Cipollone indicated that the Eurozone economy remains resilient, with balanced risks around inflation [6]

Labor Market - Job openings in July came in at 7,181,000, lower than the expected 7,400,000, marking the smallest job openings number since the end of 2020 [1] Factory Orders - Factory orders for July met expectations at -13%, the strongest number since May [2] - Factory orders excluding transportation also met expectations, up 610 [2] Durable Goods - Final durable goods orders for July remained at -28%, a weak number [3] - June durable goods orders were -94%, the worst since April 2020, following a 165% increase prior to that, the best since 2014, indicating a tug-of-war possibly related to tariffs [3][4] - Transportation orders excluding air decreased from 11% mid-month to 1% [4] - Capital good orders non-defense excluding air, a proxy for capital spending, remained at 11%, the best number since May when it was up almost 2% [4][5] - Shipments were about 07% (3/4 of 1%), consistent with the mid-month read [5] Bond Market - The 10-year Treasury yield is hovering around 422%, down four basis points, and the 2-year Treasury yield is at 361%, down three basis points [5] - The 10-year Treasury yield has been in a consolidated range between 420% and 433% [6]

Factory Orders & Revisions - June factory orders declined by 48%, the weakest since January 2024 [1] - Previous month's factory orders revised upwards from 82% to 83%, marking the second-largest increase in history dating back to 1956 [2] - Excluding transportation, factory orders increased by 04%, exceeding expectations following an upward revision from 210 to 310 last month [2] Durable Goods - Durable goods orders revised downwards from -93% to -94%, representing a historically significant decrease since 1992 [3] - Excluding transportation, durable goods orders increased by 210 [3] - Aircraft orders significantly influenced the fluctuations in durable goods orders over the past two months [4] Shipments & Capital Spending - Orders decreased by 08%, the largest decline since April of this year when it was -15% [4] - This decline in orders is a negative indicator for capital spending [5] - Shipments increased by 03%, largely as expected [5] Interest Rates & Market Equilibrium - Interest rates remain stable, with the 2-year rate at 369 and the 10-year rate at 421 [5] - The market appears to be in equilibrium, awaiting further developments in the labor market and decisions from the Federal Reserve [6]

Factory Orders & Durable Goods - Factory orders for May increased by 82%, a significant surge [1] - The prior month's figure was revised from -37% to -39% [2] - Excluding transportation, factory orders increased by 210%, indicating aircraft orders significantly contributed to the overall growth [2] - Durable goods orders remained at 164%, primarily due to aircraft orders [3] - Core capital goods orders (non-defense excluding aircraft) increased by 17%, the second-highest number of the year [3] - Shipments versus orders decreased slightly from 05% to 04% [3] ISM Services - The ISM Services headline figure was 508%, the highest since April's 516% [4] - Prices paid decreased to 675%, the lowest since April's 651%, but still a substantial figure compared to previous months [4] - New orders rose to 513%, indicating a return to expansion [5] - Employment within the ISM Services sector contracted, falling from 507% to 472%, comparable to March's 462% [5] Market Reaction & Outlook - Yields and equities are up, reflecting a positive market response to the economic data [6] - The upcoming week will be dynamic due to Treasury supply events (3s, 10s, and 30s) [6]