U.S. factory orders rose less than expected

The number of orders placed with U.S. factories increased less than forecast in December, indicating a drop in non-durable goods that partly countered gains in construction equipment and computers. The report by the Commerce Department showed that bookings climbed only 1.8% after a revised 0.3% drop in November, while analysts expected a 2.3% gain. At the same time, the demand for core capital durable goods dropped 0.3%, while orders for durable goods, items expected to last at least three years, rose 4.3%, below expectations for a 4.6% increase. Orders for non-durable goods, such as petroleum products, chemicals and paper, declined 0.3% in December after a 1% drop in November.

"Once you get beyond the weak headline, the rest of the report was good enough to satisfy expectations," said Neil Dutta, head of economics at Renaissance Macro Research.