Factory orders rose 0.7 percent in April from March, in line with the Econoday consensus calling for a gain of 0.7 percent. Orders for March were revised down to show a gain of 0.7 percent from the 1.6 percent initially reported

Capital goods orders core orders (nondefense ex-aircraft) were a bit softer as they were revised to show a gain of 0.2 percent in April from March from the 0.3 percent rise reported in the advance durable goods orders report for April.

Nondurable orders, which are posted in today's report but with limited detail, rose 0.8 percent after March's 0.7 percent gain. Durable goods orders are revised at plus 0.6 percent in April from plus 0.7 percent reported in the advance durables report.

Factory orders are expected to rise 0.7 percent in April versus March's 1.6 percent gain. Durable goods orders for April rose 0.7 percent indicating forecasters see no change for the report's nondurables component.

Factory orders represent the dollar level of new orders for both durable and nondurable goods. This report gives more complete information than the advance durable goods report which is released one or two weeks earlier in the month.

Investors want to keep their fingers on the pulse of the economy because it usually dictates how various types of investments will perform. The stock market likes to see healthy economic growth because that translates to higher corporate profits. The bond market prefers more moderate growth which is less likely to cause inflationary pressures. By tracking economic data like factory orders, investors will know what the economic backdrop is for these markets and their portfolios. The orders data show how busy factories will be in coming months as manufacturers work to fill those orders. This report provides insight to the demand for not only hard goods such as refrigerators and cars, but nondurables such as cigarettes and apparel. In addition to new orders, analysts monitor unfilled orders, an indicator of the backlog in production. Shipments reveal current sales. Inventories give a handle on the strength of current and future production. All in all, this report tells investors what to expect from the manufacturing sector, a major component of the economy and therefore a major influence on their investments.