Ahead of the Bell: Heavy machinery makers

NEW YORK -
Shares of heavy machinery companies could see increased activity Wednesday as the government releases data expected to show demand for big-ticket manufactured goods grew slightly in July, after a big jump the previous month.
The Commerce Department's report on durable goods orders will show an increase of 0.1 percent in July from the previous month, according to the consensus estimate of Wall Street economists surveyed by Thomson/IFR. The data will be released Wednesday at 8:30 a.m. EDT.
Removing bookings for transportation equipment, such as airplanes, which can swing widely from month to month, orders for all other manufactured goods are expected to dip by 0.3 percent in July.
Orders for durable goods, which are items expected to last three years and include cars, appliances and machinery, rose 0.8 percent in June, the largest increase in four months. Analysts attributed much of the increase to heavy defense spending.
Economists said that exports also helped bolster durable goods orders during the U.S. economic slowdown. Exports have experienced strong growth this year due to economic growth overseas and a declining dollar, which makes domestic exports cheaper for foreign buyers. But in recent weeks those trends have shown signs of reversing.
David Resler, chief economist at Nomura Securities, said in a note to clients that Wednesday's report could provide "an early indication about the impact that slower global economic growth and a stronger dollar might have in the months ahead."