After beating expectations of a decline in September (thanks to a 118.7% MoM spike in defense aircraft spending), October was also pegged for a notable decline and Durable Goods delivered a crushing blow, plunging 4.4% MoM (against expectations of a 2.6% decline).

(Click on image to enlarge)

Thanks in large part to a 59.3% MoM collapse in Defense aircraft spending... (defense capital goods plunged 16.6% MoM and non-defense aircraft also dropped 21.4% MoM)

This is the biggest dollar drop in defense aircraft spending since 9/11/2001...

(Click on image to enlarge)

Year-over-year durable goods growth slowed notably to +6.65%...

(Click on image to enlarge)

Perhaps worst of all, a proxy for business spending, Cap Goods Orders non-defense were unchanged in October (after a downward revised 0.5% MoM drop in September) missing expectations of a 0.2% rise...

(Click on image to enlarge)

Certainly not the 'hot economy' that The Fed seems so scare of.