In this Tuesday, Jan. 8, 2013 photo, Andy Anderson, a salesman at the Aggressive Appliances store in Orlando, Fla., looks over washers and dryers on display. Orders for U.S. factory goods that signal business investment plans jumped in January by the most in more than a year, suggesting companies are confident about their business prospects. The Commerce Department said Wednesday, Feb. 27, 2013, that orders for so-called core capital goods, which include industrial machinery, construction equipment and computers, rose 6.3 percent in January from December. A sharp fall in demand for commercial aircraft caused overall durable goods orders to drop 5.2 percent, the first decline since August. (AP Photo/John Raoux)
Sector Snap: Machinery companies rally
Published: 05:59:45 PM, Wed 27 February 2013 UTC
NEW YORK (AP) — Shares of companies that make machinery, tools and factory equipment rose Wednesday after the Commerce Department said that orders for so-called core capital goods rose in January from a month earlier.
Orders for industrial machinery, construction equipment and computers rose 6.3 percent. When factoring in a drop in the volatile demand for commercial aircraft, overall durable goods orders fell 5.2 percent, the first decline since August.
Citi Investment Research analyst Steven Wieting said in a research note that with core orders showing such strength, "it should bode well for the business investment rebound in early 2013."
John Baliotti, an analyst with Janney Capital Markets, said the Commerce report "still exhibited trends that concern us," including the overall decline. But in a year-over-year comparison, fewer elements in the report were negative than in December, he said. "We continue to look for a sustained turn in the manufacturing sector," he wrote in a report.
Here is how some machinery companies are faring in midday trading:
Pentair Ltd. rose $1.68 to $52.42.
Stanley Black & Decker Inc. rose $1.85 to $78.11.
Parker-Hannifin Corp. rose $1.50 to $93.15.
Snap-on Inc. rose $1.81 to $79.59.
Xylem Inc. rose 25 cents to $27.25.
Paccar Inc. rose 73 cents to $47.31.
Pall Corp. rose 68 cents to $67.28.
Dover Corp. rose 94 cents to $73.19.
Deere & Co. rose $1.34 to $87.84.
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