Durables orders rebounded 2.8 percent in January after dropping 3.7 percent in December. Market expectations were for a 2.0 percent rebound. Excluding transportation, the core edged up 0.3 percent after slipping 0.9 percent in December. The median market forecast called for a 0.7 percent gain in January.

Transportation rebounded 9.1 percent, following a monthly plunge of 10.1 percent the prior month. Motor vehicles declined 2.9 percent, nondefense aircraft surged a monthly 128.5 percent percent, and defense aircraft decreased 6.5 percent.

Outside of the core, orders were mixed. Industries that advanced were machinery, computers & electronics, and "other." Declines were seen in primary metals, and electrical equipment.

Nondefense capital goods orders excluding aircraft rebounded 0.6 percent after declining 0.7 percent in December. Shipments of this series slipped 0.3 percent in January after dipping 0.3 percent the previous month.

Overall, manufacturing is still soft, taking into account averages for the data over recent months.