Durable goods orders still showing strength in 2017 despite weak April report. Real Time Economic Calendar provided by Investing.com. **NEW** As part of the ongoing process to offer new and up-to-date information regarding seasonal and technical investing, we are adding a section to the daily reports that details the stocks that are entering their period of seasonal strength, based on average historical start dates. Stocks highlighted are for information purposes only and should not be considered as advice to purchase or to sell mentioned securities. As always, the use of technical and fundamental analysis is encouraged in order to fine tune entry and exit points to average seasonal trends. Stocks Entering Period of Seasonal Strength Today: No stocks identified for today The Markets Stocks went into the long weekend on a soft note with major indices hovering around the flatline during the session. The S&P 500 Index closed higher by a mere three basis points, charting a 7th straight session of gains. For the week, the large-cap benchmark returned 1.43%, ending the 5-day stretch at a new all-time high as the positive trend remains intact. Support at the 20-week moving average remains readily apparent as weekly momentum indicators look set to take another swing higher. The trading activity from the past couple of weeks fills a gap that was opened in the second half of April, confirming a point of support in the 2350 to 2370 range. Historical tendencies for the week ahead (the week of Memorial Day) suggest a positive bias with returns for the S&P 500 Index averaging 0.51% since 1990. However, the frequency of gains in this post-holiday week are typically less than the week prior with only 59% of periods showing a higher result; this compares to the 63% frequency of success in the week leading up to the statutory holiday. The market has a number of things to contend with as it enters a new month, including ongoing geopolitical concerns, potential catalysts that could bring upon a sudden rise in volatility similar to what was realized in the weeks just past. This activity is typical of the summer behaviour that will often present opportunities in both directions as the bull and bears battle for control. On the economic front, a report on durable goods for April had analysts setting a wide range of expectations for what is typically a volatile result. Analysts had forecasted a month-over-month change in new orders of anywhere between –3.0% to +2.0%. The actual result came in at –0.7%, not far off from the mid-point of the consensus range. Excluding the more volatile transportation component, the result showed a decline of 0.4%, missing the consensus estimate calling for a gain of the same margin. Stripping out the seasonal adjustments, orders of durable goods actually declined by 22.1%, more than the average decline for April of 18.1%. The year-to-date change at –21.1% still remains above the average trend through the first four months of the year. The aggregate result was influenced by opposing forces in defence and transportation spending; new orders of defense capital goods fell 27.3%, less than the 33.4% average decline for April, while new orders of transportation equipment fell by 23.2%, much more than the average decline of 15.3%. Most of the components of the report continue to show an above average change on the year, keeping durable goods manufacturing in a position of strength. Overall, while not exactly an upbeat headline print for the month of April, durable goods manufacturing is still lined up to produce a strong result for the 2017 calendar year. Defense spending, which had been a big driver of activity in years past, is now just starting to come around following a below average start to the year. If the Trump administration gets their way, this area will see a big boost in activity in the years ahead as the new president works to “make America great again.” The months of April and May are typically volatile for this report with June realizing a substantial lift as manufacturers close their books for the quarter. Sentiment on Friday, as gauged by the put-call ratio, ended bullish at 0.91. Seasonal charts of companies reporting earnings today: S&P 500 Index TSE Composite