Tradex Global Commentary: Weekly Jobless Claims

TRADEX GLOBAL INTERNAL COMMENTARY

Jobless claims increased by 6k last week to 386k, with the prior week being revised up by 3k. The number was worse than consensus expectations (375k), pushing the 4 week average up to 382k. Continuing claims declined by 33k. Most of the recent significant economic reports have been disappointing, and this was no different.  Prior week revisions continue to be poor and the trend seems to be creeping back up towards 400k.  We are very cautiously heading into the weekend, regardless of whether bad is good in our crazy world (S&P was up almost 1.2% today…QE3 anyone???) The Greek election is Sunday and we will be watching closely.  – Richard Travia

EXTERNAL RESEARCH COMMENTARY

More Americans applied for jobless benefits and consumer prices dropped by the most in three years, giving the Federal Reserve room to spur an economy that’s generating little growth or inflation. Claims for unemployment insurance payments unexpectedly climbed by 6,000 to 386,000 in the week ended June 9, Labor Department figures showed today in Washington. The cost of living fell 0.3 percent in May, led by the biggest decrease in gasoline prices in three years, the agency also reported. Stocks rose as investors increased bets Fed policy makers meeting next week will take additional steps to boost growth and cut an unemployment rate stuck above 8 percent since February 2009. Cheaper energy costs also provide some relief for Americans against a backdrop of moderating job and wage gains that has slowed consumer spending. “The Fed is really concerned about the outlook for employment and growth,” said Kevin Logan, the chief U.S. economist at HSBC Securities USA Inc. in New York who correctly forecast the decline in prices. “They’ve been pretty sanguine about the inflation outlook, and today’s data certainly didn’t contradict that outlook.” The Standard & Poor’s 500 Index climbed 0.9 percent to 1,326.13 at 11:28 a.m. in New York. Investors were also waiting for the results of elections in Greece this weekend that may determine the fate of the euro. Another report today showed consumer confidence climbed last week for a fourth consecutive time.

Tradex Global Advisory Services, LLC

investorrelations@thetradexgroup.com 

203-863-1500

@Tradex_Global