Initial Jobless Claims
- Initial Jobless Claims declined 23,000 to 452,000; consensus was 450k to 460k
- The four week moving average fell to 458,000 from 462,250
- The October 14 report was revised higher 13,000 to its highest level since August
- 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.