Jobless Claims Remain Stubbornly High

The Bureau of Labor Statistics reported this morning that, for the week ending November 14th, Initial Jobless Claims rose to 742k from the prior week’s 711k, revised from 709k. Continuing Claims for the week ending November 7th dipped slightly to 6.37M from the prior week’s slightly revised 6.8M. This result was slightly better than the forecast of 6.4M. Also out today was the Philadelphia Fed’s Business Conditions Index and it beat estimates of 22.5 by coming in at 26.3. Still, that’s a downturn from October’s Index level of 32.3. This mirrors an earlier Empire Index report from the New York Fed also indicative of a generally slowing trend in economic activity.

Amid a resurgence in COVID-19 cases and renewed lockdown restrictions, equity markets are likely to start off today in the red while bond prices move slightly higher. The Ten-Year is trading around 85 basis points while the Long Bond has dipped slightly below 1.60%. Crude oil is off slightly at $41.66 while gold’s $14 dip takes that price to $1,858. A little later today, the Conference Board will report its Index of Leading Economic Indicators and the National Association of Realtors will tell us about Existing Home Sales for October. The Kansas City Fed will also release its November Manufacturing Index.