TRADEX GLOBAL
INTERNAL COMMENTARY
Jobless claims climbed 18k in
the latest week. The labor department reported 354k new claims in the week ended
June 15 from a revised 336k the previous period. The Bloomberg survey of 46
economists called for a number in the 340k range, so this was a disappointing
number. Firings have slowed dramatically but “new” hiring’s are still too low to
reduce the unemployment rate. The more disappointing number is the four week
moving average, jumping to 348k from the previous four week period of 345k. This
number is a more accurate reading and is a reason why we believe the Fed will
not do as much as the market is worried about. Keep nimble – Michael
Beattie
EXTERNAL
RESEARCH COMMENTARY
More Americans than forecast
filed applications for unemployment benefits last week, showing progress on
reducing joblessness remains uneven amid slower growth this quarter. Jobless
claims climbed by 18,000 to 354,000 in the week ended June 15 from a revised
336,000 the prior period, the Labor Department reported today in Washington. The
median forecast of 46 economists surveyed by Bloomberg called for 340,000. No
states were estimated and there was nothing unusual in the data, a Labor
Department spokesman said as the figures were released. Employers
will need to limit firings before the world’s largest economy can show bigger
gains in payrolls. Federal Reserve officials announced yesterday that they would
maintain the central bank’s $85 billion in monthly asset purchases until the
expansion shows further signs of strengthening. “Firms have just been very
cautious in their hiring and they remain so,” said Stephen Stanley, chief
economist at Pierpont Securities LLC in Stamford, Connecticut. Stanley projected
a rise in claims to 346,000. Still, “by and large, the conditions in the labor
market are pretty steady.” Stock-index futures held earlier losses after the
report. The contract on the Standard & Poor’s 500 Index maturing in
September declined 0.9 percent to 1,609.6 at 8:45 a.m. in New York after the Fed
said it may start paring stimulus measures later this year.
Tradex Global Advisory Services, LLC
investorrelations@thetradexgroup.com
203-863-1500
@Tradex_Global
No comments:
Post a Comment