Durable Goods Preview

Durable goods orders are due out at 8:30 a.m. ET, with expectations of a gain of 3.1 percent, with estimates ranging from 0.6 percent to 6.4 percent according to Bloomberg News. Ex-transportation, the consensus is looking for a gain of 0.5, with an estimates range of 0.00 percent to 1.0 percent.

Durable goods orders are likely to be overly affected again by the monthly swings in aircraft orders from Boeing orders, which showed a spike in June. But strength is expected in areas other than transportation as well with forecasters calling for a second consecutive 0.5 percent gain in the durable goods ex-transportation report. Overall, durable goods has been very weak so far this year, with mostly flat readings for the closely watched capital goods group. Following two consecutive declines, a rebound in core capital goods orders would be encouraging sign.

Durable goods orders indicate the underlying strength in the manufacturing sector, a major component of the overall economy.They also are a leading indicator for industrial production and capital spending, with the durable goods report being one of the last major economic releases before the Federal Reserve begins their two-day policy meeting on Tuesday.

S&P 500 futures were showing slight losses in front of the release.