TRADEX GLOBAL INTERNAL COMMENTARY
Jobless claims decreased by 6k last week to 386k, with the
prior week being revised up by another 5k. The number was slightly worse
than consensus expectations (385k), with the 4 week average unchanged at 387k.
Continuing claims were down by 15k, but still higher than expected. Joblessness
continues to be a problem, with recovery coming much slower than is
needed. Prior week revisions also
continue to be poor, with the jobless claims trend creeping back up towards
400k. Tail hedges are on both portfolios
as all eyes are on the Euro Summit. – Richard Travia
EXTERNAL RESEARCH COMMENTARY
The number of applications for unemployment benefits hovered
last week near the highest level of the year, showing little improvement in the
U.S. labor market. Jobless claims decreased by 6,000 to 386,000 in the week
ended June 23, in line with the median forecast of economists surveyed by Bloomberg
News, Labor Department figures showed today in Washington. The prior week’s
reading was revised up to 392,000 from 387,000, matching an April figure as the
steepest of 2012. Concern about the fallout from the European debt crisis and
the so-called fiscal cliff that will face the U.S. at the end of this year may
prompt employers to keep payrolls lean. Federal Reserve policy makers last week
expanded a program to replace short-term bonds with longer-term debt in a bid
to spur growth and trim a jobless rate that’s exceeded 8 percent for 40
consecutive months. “There is no progress,” said Jeremy Lawson, a senior U.S.
economist at BNP Paribas in New York. “There is clearly an underlying weakness
that is troubling. The labor market is sputtering along, struggling to create
jobs. The pace of consumer spending will slow in the second quarter.” The
world’s largest economy expanded 1.9 percent in the first quarter, the same as
previously estimated, data from the Commerce Department also showed today.
Tradex Global Advisory Services, LLC
investorrelations@thetradexgroup.com
203-863-1500
@Tradex_Global
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