Weekly jobless claims rise more than forecast – last week revised higher; Moody’s says US could lose AAA rating without deficit cuts..



Stock futures pulled back from their early morning highs Thursday as the number of U.S. workers filing new claims for jobless benefits rose more than economists expected last week….

…Weighing on stocks, the U.S. Labor Department said initial claims for jobless benefits rose by 11,000 to 531,000 in the week ended Oct. 17. The previous week’s level was revised from 514,000 to 520,000.

Economists surveyed by Dow Jones Newswires had expected only a slight increase of 4,000, with the report serving as another sign of tough times for the jobs market….

Moody’s tells the WH and Congress to STOP SPENDING (in so many words, lol, we need to get the deficit down and no SANE person would raise taxes in a recessionary, zero job growth environment, right? Bueller? Bueller?!):

The United States, which posted a record deficit in the last fiscal year, may lose its AAA-rating if it does not reduce the gap to manageable levels in the next 3-4 years, Moody’s Investors Service said on Thursday.

The U.S. government posted a deficit of $1.417 trillion in the year ended Sept. 30 as the deep recession and a series of bank rescues cut a gaping hole in its public finances…

October 22, 2009. Tags: , , , , , , , . Economy, Labor Department, Obama Administration, Politics, Taxes, Unemployment Statistics, Wall St. Comments off.

Breaking: July Jobs Report: Unemployment jumps to 9.7%..

Unemployment rate was expected to rise to 9.6, it hit 9.7 % instead

Highest level since June 1983. It JUMPED from 9.4 to 9.7 AHA KNEW something was wrong with July’s data

August nonfarm payrolls down 216,000

July revised to down 276,000 vs original report of down 247,000

June revised to down 463,000 from original report of down 443,000

August hours worked FLAT 33.1 same as July, no signs of a bump in economic growth there

GOVT layoffs in this number, tell me more BS about the spendulus SAVING state jobs.. Feds minus 5,000, state minus 5000, local MINUS 9,000 (LOST JOBS ON EDUCATION)

Breaking it down: August: factory jobs down 63,000; goods producing down 163,000; construction down 65,000

Ernie Ford courtesy of LordEgan

September 4, 2009. Tags: , , , , , , . Economy, Finance, Foreclosures, Housing, Obama Administration, Politics, Taxes, Unemployment Statistics, Wall St. Comments off.

Market Mover Thursday: Weekly Jobless Claims drop, continuing claims highest since 1967, retail sales drop and Cramer says TOTUS is hurting the economy….

Weekly jobless claims were lower than expected Labor Dept is saying it is technical, seasonally adjusted auto layoffs are screwing up the data, and there was a holiday-nothing to write home about, but hopefully some more people are still working..continuing claims hit another record…

The number of newly laid-off workers filing initial claims for jobless benefits last week fell to lowest level since early January, largely due to changes in the timing of auto industry layoffs…Continuing claims, meanwhile, unexpectedly jumped to a record-high….New claims for unemployment insurance (dropped) by 52,000 to 565,000, the Labor Department said Thursday.

…The drop resulted partly from technical factors, a department analyst said. Auto layoffs that normally take place in early July, as factories are retooled to build the next year’s models, occurred in the spring instead as General Motors Corp. and Chrysler LLC implemented sweeping restructuring plans.

The department’s seasonal adjustment process expected a large increase in claims from auto workers and other manufacturing workers, the analyst said. Since that didn’t occur, seasonally-adjusted claims fell. The non-seasonally adjusted figure increased by about 17,000 to 577,506 initial claims.

Still, continuing claims jumped 159,000 to 6.88 million, the highest on records dating from 1967. Analysts had expected 6.71 million continuing claims…

Retail sales continue to drop (not surprising anyone in the real world but shocking to economists!)

Meanwhile Jim Cramer is again calling attention to what should by now be obvious to anyone watching the markets, TOTUS is hurting the economic recovery with his inability to leave any sector of the economy untouched…MiM has not been watching Cramer since his rather sad appearance on Stewart and his subsequent change of tone on TOTUS.

We know Jim has college shows and the ‘youts’ are an important part of his demographic, but what we loved about Cramer was his in your face, tell it like he sees it attitude. GE reigned him in pretty hard apparently. Well Jim is back off the reservation, and MiM is glad to see him back in the game:

The same force that so hurt the markets this winter has yet again reared its ugly head: the White House’s anti-business rhetoric. Cramer on Wednesday blamed the negative sentiment for stocks’ recent pullback. Investors don’t seem to trust President Obama to create jobs and stimulate the economy, not when he prioritizes climate change and health care. “I want President Obama to succeed,” Cramer said, “but right now he’s getting it wrong.”…

Jim was careful to get that ‘I want him to succeed!’ in there, as the leftys lose it if anyone has the AUDACITY to acknowledge the One’s negative impact on the economy, Jim is apparently trying to avoid the ‘Rush’ treatment….

Obama’s administration seems to be working on all the wrong things, at least for now given the recession and the chatter about revisiting the early March lows. On top of cap-and-trade and Medicare, the president has pushed for the expansion of union powers, taxing offshore corporate profits and even probing AT&T  and Verizon on antitrust grounds. Cramer doubted that Obama could send clearer signals that his concerns are anywhere but the economy. Not that these aren’t noble pursuits, but people need steady income so they can pay their mortgages.

“The president should be focusing on job creation,” Cramer said, “but is in fact doing very little of the sort.”

Businesses won’t start hiring until we get two of three economic imperatives, Cramer said: people need to feel their jobs are stable, their home prices are stable and that stocks are going higher. Right now we have stabilization in home prices, but not in jobs. And then there’s the OAI. One of three isn’t good enough.

Cramer urged Obama to postpone his agenda for now in favor of boosting the economy. And the best way to do that is to fight unemployment.

“Without more job creation,” Cramer said, “the president’s agenda and his tone will continue to slowly and inexorably squeeze the life out of this stock market.”

Art Cashin  is also pulling no punches:

Cashin reiterated his belief that another government stimulus package would be useless — because the first package was “part illusion, part hoax.” And now that the economy’s problems seem to be continuing, “the fire extinguisher’s empty,” he said. Cashin believes the current stock rally will be short-lived….

Alcoa earnings yesterday:


July 9, 2009. Tags: , , , , , , , , , . Economy, Finance, Labor Department, Music, Obama Administration, Politics, Taxes, Unemployment Statistics, Wall St. 1 comment.

Market Mover Thursday: Bernanke under subpoena on the Hill, Jobless claims up, Final GDP for 1Q -5.5%…

Rep. Darrell Issa, R-Calif., says the Federal Reserve failed to disclose details about its involvement in Bank of America’s controversial acquisition of Merrill Lynch, and today Fed Chairman Bernanke will testify before the House Oversight Committee about the deal. Rep. Issa discusses the allegations with CNBC.

Vodpod videos no longer available.

*FD- MiM are shareholders of BofA (and Merrill now also BofA, lol)

On this week’s jobless claims and GDP revisions (CNBC):

The number of people filing new jobless claims jumped unexpectedly last week, and the total unemployment benefit rolls rose to more than 6.7 million. In related news, the economy tumbled at a 5.5 percent pace in the first quarter, but appears to be doing better now.

The department said initial claims for jobless benefits rose last week by 15,000 to a seasonally adjusted 627,000. Economists expected a drop to 600,000, according to Thomson Reuters. The number of people continuing to receive unemployment insurance rose by 29,000 to 6.74 million, slightly above analysts’ estimates of 6.7 million. The four-week average of claims, which smooths out fluctuations, was largely unchanged, at 616,750.

Extended Benefits Unemployment Numbers up also:

Millions of Americans also are receiving jobless benefits through a federal extension enacted by Congress last year. For the week ending June 6, more than 2.4 million people received benefits under the extension, which adds 20 to 33 weeks on top of the 26 weeks typically provided by states. About 288,000 people also are receiving benefits under state emergency programs, bringing the total jobless benefit rolls to nearly 8.8 million that week. The extended benefits data lags initial claims by two weeks.


…Gross domestic product, which measures total output within U.S. borders, dropped at a 5.5 percent annual rate in the first quarter after shrinking 6.3 percent in the fourth quarter of last year and 0.5 percent in the third quarter. The GDP reading was the final one for the first quarter. The Commerce Department initially said it contracted 6.1 percent, then revised that to 5.7 percent and finally to a 5.5 percent fall. GDP is expected to decline again in the current quarter ending June 30 though less severely than in the first quarter.

The Consumer:

…Consumer spending, which fuels two-thirds of U.S. economic activity, increased at a downwardly revised 1.4 percent rate instead of the 1.5 percent previously estimated….

more about “Issa on Bernanke Allegations – CNBC.com“, posted with vodpod

June 25, 2009. Tags: , , , , , , , , , , , . Economy, Finance, Politics, Unemployment Statistics, Wall St. Comments off.

Market Mover Friday: April Jobs Report…


Unemployment rate is 8.9%, highest since 83

Smaller than expected 539,000 jobs lost in April….

But the revisions are bad for March …


..U.S. employers cut a smaller-than-expected 539,000 jobs in April, the smallest amount since October, according to government data on Friday that hinted at some improvement in the labor market and the recession-hit economy.

..However, the Labor Department said the unemployment rate soared to 8.9 percent, the highest since September 1983. March’s payrolls figure was revised to show a decline of 699,000, compared with a previously reported drop of 663,000. Job losses in February were bumped up to 681,000 from the previously estimated 651,000….

MiM expects next month they will revise these numbers higher…

Now that the Stress Tests are officially over and these jobs numbers came in better than expected there may be a killer rally today but MiM still considers it a Bear Market Rally and we aren’t playing…maybe if it were someone else’s money like it is for Congress we would be all smiley and enjoy the 30% jump this Rally has given the S&P Financials……..

PS Govt hired 66,000 Census workers, so this number is ya know, Government Cheese…

May 8, 2009. Tags: , , , , , . Economy, Labor Department, Obama Administration, Politics, Uncategorized, Unemployment Statistics, Wall St. 1 comment.

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