US durable goods orders drop unexpectedly spurring concerns over economy, US stock index futures decline

According to official data released on Tuesday, U.S. durable goods orders fell unexpectedly in December; core orders also fell, fuelling concerns over the strength of the economy. US stock index futures furthered sharp declines on the negative news.

The U.S. Commerce Department said in a report that total durable goods orders, which include transportation items, decreased by a seasonally adjusted 3.4% last month, compared to expectations for a gain of 0.5%.

Orders for durable goods in November declined 2.1% from a previously reported fall of 0.9%.

Durable goods are typically bulky or heavy products designed to last at three years, such as trains, planes and automobiles.

Core durable goods orders, excluding volatile transportation items, declined by a seasonally adjusted 0.8% in December, disappointing forecasts for a 0.6% gain.

In November, core durable goods orders declined by 1.3%, whose figure was revised from previously reported drop of 0.7%.

A key barometer of private-sector business investment - orders for core capital goods fell by 0.6% last month, worse than expectations for a 0.9% increase and after falling 0.6% in November.

Shipments of core capital goods, a category used to calculate quarterly economic growth, declined 0.2% in December, ranking below forecasts for a 1.0% gain, after falling 0.6% in the preceding month.

Meanwhile, CNBC reports that U.S. stock index futures furthered already steep declines on the disappointing data. The Dow futures pointed to a loss of 1.5% at the open, the S&P 500 futures fell 1.2%, while the Nasdaq 100 futures slumped 1.4%.

Earnings season is poised to gather steam this week, with some of Wall Street's biggest names lined up to report. Apple releases its earnings after the close on Tuesday, with analysts expecting the tech firm to beat consensus.