"Economists are pessimists: they've predicted 8 of the last 3 depressions."
--Barry Asmus

The Required Disclosures

The information presented in this blog and its individual articles is provided for informational use only and should not be considered investment advice or an offer for a particular security. The contents reflect the views and opinions of the individual writer as of the date the article was written and do not necessarily represent the views of the individual writer on the current date. They also do not in any way, shape, or form represent the views of the Firm Never-To-Be-Named. Any such views are subject to change at any time based upon market or other conditions and The Great Redoubt and its individual writers disclaim any responsibility to update such views. These views should not be relied on as investment advice, and because investment decisions for any security are based on numerous factors, may not be relied on as an indication of trading intent on behalf of any contributor to The Great Redoubt. Neither The Great Redoubt nor any individual author can be held responsible for any direct or incidental loss incurred by applying any of the information offered. Please consult your tax or financial advisor for additional information concerning your specific situation.

Thursday, August 11, 2011

First Time Jobless Claims

And of course, we have the first time jobless claims.  What can I say about this that hasn't already been said?
 
Last week, the analysts were expecting a seasonally-adjusted 403,000 new claims for the week ending 7/30.  We came in at 401,000, which beat expectations right until the almost inevitable moment today in which that figure is revised upwards[1].  Unadjusted initial claims for the same period declined 27,230 to a level of 339,348, and the total number of people claiming benefits in all programs (for the week ending 7/16) came in at 7,570,439.
 
The Econoday-surveyed analysts are not expecting the week ending 8/6 to be so good.  They are calling for 405,000 new claims for the week.  Are they right?  Well, history seems to show that they aren't, but let's look and find out anyway.
 
Right off the bat, the Unemployment Insurance Weekly Claims Report shows my continuing skepticism about the advance figures is justified.  But only slightly, this week.  The new claims for the week ending 7/30 were revised upwards to a level of 402,000[2].  And now, here's where the interesting data happens:  for the week ending 8/6, the advance figure for seasonally adjusted initial claims comes in at 395,000 - substantially beating expectations.  On the down side, the unadjusted initial claims figures for the same week rose 12,022 to a level of 351,370.  The total number of people claiming benefits in all programs fell 90,524 to a level of 7,479,915[3].
 
So, we had a dose of good news for the markets that are feeling spooked by current economic conditions.  Will it be enough to turn things around?  No, probably not.  Not on its own, anyway.
 
[1]  We're sitting at 19 upwards revisions out of 23 weeks, so we have an 82.61% chance of an upwards revision.
[2]  So yes, that does put us at 20 upwards revisions out of 24 weeks.  But it seems almost petty to lament an upwards revision of 2000.
[3]  A fact that is not, as I have remarked before, necessarily good news.

No comments:

Post a Comment