Surprising pop in durable goods orders

This isn't a huge week for economic data. But we did just get a report on durable goods orders in June and they were much stronger than expected. Overall orders were up 0.8%, versus expectations for a decline of 0.3%, and orders ex-transportation were up 2%, versus forecasts for a drop of 0.2%. A key measure of business investment, non-defense capital goods orders, ex-aircraft (Yes, it's a mouthful), was up 1.4%.

Bonds are a bit weak on the news (down 7/32 on the long bond futures), while stock futures have popped. The dollar index is off its lows, but still down about 17 points. Next up: June new home sales figures, due out at 10 a.m. Expectations are for a monthly drop of 1.8%.