Jobless Claims Fall Along With Inflation

The Bureau of Labor Statistics announced this morning that, for the week ending November 7th, Initial Jobless Claims totaled 709k versus an expected total of 731k. The prior week’s 751k was revised to 757k. Continuing Claims for the week ending October 31st came in at 6.79M versus an expected 6.83M. The prior week’s 7.29M was revised to 7.22M.

Also out today, the Consumer Price Index was unchanged in October, but the year-over-year pace slipped to 1.2% from 1.4% against a forecast of 1.3%. Without food and energy, core CPI was also unchanged last month, with that twelve-month pace dipping to 1.6% from 1.7% as analysts were looking for no change.

Inflation-adjusted Real Average Hourly Earnings stagnated in October at an unchanged 3.2% year-over-year growth rate while Real Average Weekly Earnings were also unchanged year-over-year at 4.4%. The latter reflects a revision to September from 4.1% to 4.4%.

In early trading, markets were already reversing some of the euphoric reaction to Monday’s vaccine announcement and Treasury prices are regaining a little bit of lost ground. The Long Bond is up over a point in price and is currently yielding 1.69% while the Ten-Year’s half-point rally has that issue yielding 92 basis points. The Two-Year is steady at 0.17%. The Treasury is selling $27B Thirty-Year bonds later today. Crude oil has slipped a little bit but is still trading north of $41 while gold is little changed at $1,871. DJIA pre-market trading points to a triple-digit down opening.