Financial Professionals

Market Insights

A A A

Initial Jobless Claims

10/20/2010
  1. Initial Jobless Claims declined 23,000 to 452,000; consensus was 450k to 460k
  2. The four week moving average fell to 458,000 from 462,250
  3. The October 14 report was revised higher 13,000 to its highest level since August
  4. The unemployment rate for those eligible for benefits remained at 3.5%

 

COMMENTARY - This morning's report is further evidence that the U.S. Labor market remains stagnant, with no potential improvement in sight. In fact, those collecting emergency and extended benefits increased 280,000 to 5.07 million. Yesterday's Beige Book report specifically stated "firms are reluctant to add to permanent payrolls given economic softness."

QE 2 is coming.  The size and pace of purchases is all that remains to be determined at the November 2 & 3 FOMC meeting.

Virtus Investment Partners provides this communication as a matter of general information. The opinions stated herein are those of the author and not necessarily the opinions of Virtus, its affiliates or its subadvisers. Portfolio managers at Virtus make investment decisions in accordance with specific client guidelines and restrictions. As a result, client accounts may differ in strategy and composition from the information presented herein. Any facts and statistics quoted are from sources believed to be reliable, but they may be incomplete or condensed and we do not guarantee their accuracy. This communication is not an offer or solicitation to purchase or sell any security, and it is not a research report. Individuals should consult with a qualified financial professional before making any investment decisions.