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Initial Jobless Claims

08/19/2010

1. Initial Jobless Claims rose 12,000 to 500,000
2. The 4 week moving average rises to 482,500 from 474,500, highest level since December 2009
3. The August 12 report was revised from 484,000 to 488,000
4. The unemployment rate for people eligible for benefits was unchanged at 3.5%

- The Street was expecting a decline to 465,000 to 475,000
- Initial Jobless Claims are now at its highest level since November 14, 2009

I expect the Capital Markets to be obviously disappointed by this figure. However, the positive economy news from Germany and the announcement that Intel is buying McAfee for $7.68 billion should soften the blow.

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