Jobless Claims Jump; Inflation Not So Much

The Bureau of Labor Statistics just reported that, for the week ending December 5, Initial Jobless Claims totaled 853k compared to estimates of 725k. The prior week’s 712k was revised to 716k. Continuing Claims for the week ending November 28th grew to 5.76M against an expected decline to 5.21M. The prior week’s 5.52M was revised slightly to 5.527M.

Also out this morning was the Consumer Price Index coming in with a November rise of 0.2% against an expected 0.1%. Year-over-year, the pace remained at 1.2% versus an expected dip to 1.1%. Without food and energy, core CPI also grew by 0.2% last month with the year-over-year rate staying put at 1.6%. Inflation-adjusted Real Average Hourly Earnings grew by 3.2% last month, the same as the prior month. Real Average Weekly earnings grew 4.7% in November and that was greater than October’s growth rate of 4.4%.

Treasury prices are slightly higher in early trading with the Ten-Year around 92 basis points and the Long Bond at 1.67%. Crude oil is slightly higher at $46.22 as gold rises around $6 to $1,845. DJIA futures are pointing to a slightly soft opening. Later today, the Treasury will auction $24B Thirty-Year bonds while Congressional leaders are reportedly working on a fiscal stimulus bill.