Dow climbed 75, advancers just ahead of decliners & NAZ was up only pennies. The MLP index fell 2+, from yesterday's record close, to the 528s & the REIT index was up pennies in the 312s. Junk bond funds inched higher & Treasuries were mixed. Oil rose & gold continued its decline, near its lowest levels in more than 4 years.
AMJ (Alerian MLP Index tracking fund)
Photo: BLoomberg
Fewer Americans than forecast applied for unemployment benefits last week, a sign the job market is making progress as the economy grows. Jobless claims fell 14K to 298K, according to the Labor Dept. The forecast called for 303K. Continuing claims fell to the lowest level in more than 7 years. Employers are holding the line on dismissals as economic growth is projected to pick up, setting the stage for more hiring to meet demand. Waning claims also reinforce Federal Reserve policy makers’ view the labor market is strengthening, one reason they’re trimming monthly asset purchases. The 4 week average of claims rose to 301K from 296K in the prior week. The number on jobless benefit rolls declined 49K to 2.5K, the lowest level since Jun 2007 (before the last recession began). Last week included the 12th of the month, which coincides with the period the Labor Dept uses in its survey of employers to calculate monthly payroll growth. The employment report for Aug will be released on Sep 5.
Jobless Claims in U.S. Declined More Than Forecast Last Week
Federal Reserve Bank of Kansas City President Esther George said she’s encouraged by broad-based employment gains that show the economy is strong enough to withstand higher interest rates. “We have seen significant progress in the labor market over the last three years, and particularly this year,” George said at Jackson Hole, Wyoming. “As we look at the healing we’ve seen in the economy and that progress, we’re in a good place to begin talking about normalization.” She, who is hosting a 3-day Fed symposium, said policy makers have “every reason” to think about beginning to raise the benchmark interest rates above zero, where it’s been since Dec 2008. Minutes of the Jul FOMC meeting released yesterday showed Fed officials raising the possibility that they might increase rates sooner than they anticipated as they approach their goals for full employment & stable prices. Some participants “were increasingly uncomfortable” with forward guidance on keeping rates low for a “considerable time.” The jobless rate was 6.2% last month after falling in Jun to a 5 year low of 6.1%, a level policy makers had forecast it wouldn’t reach until the end of the year. The jobless rate now is “not far from what may be full employment,” George said. “Some of the policy benchmarks that we looked at and have been looking at for some time are already signaling that we should be above zero interest rates,” she added.
Fed’s George Says Job Gains Signal Rates Can Rise
An index of US leading indicators rose in Jul by the most in 4 months, as stronger job growth helps power the economy. The Conference Board’s index of leading indicators, a gauge of the outlook for the next 3-6 months, climbed 0.9% after a 0.6% gain in Jun. The forecast called for a 0.6% advance. More jobs are underpinning sentiment & demand among US households. Going forward, further gains in wages & improvement in the housing market will be needed to boost consumer spending & add additional momentum. 7 of the 10 indicators in the leading index contributed to the increase, led by declining jobless claims & more building permits. The Conference Board’s index of coincident indicators, a gauge of current economic activity, increased 0.2% after a 0.3% gain the prior month. The coincident index tracks payrolls, incomes, sales & production -- measures used by the National Bureau of Economic Research to determine the beginning and end of recessions. The gauge of lagging indicators also rose 0.2% in July.
Leading Economic Indicators in U.S. Rise by Most in Four Months
There is not a lot going on in the markets on light volume. Fighting in Ukraine is heating up ahead of meetings to calm that situation & Hamas is firing more rockets into Israel. Iraq forces with the help of US air power are have success in striking back at ISIL. In this semi vacation week, there is not a lot more to report. But Dow is over 17K & inches from reaching a new record high.
Dow Jones Industrials
AMJ (Alerian MLP Index tracking fund)
| CLV14.NYM | ...Crude Oil Oct 14 | ...93.46 |  ......0.01 | (0.0%) |
| GCQ14.CMX | ...Gold Aug 14 | ....1,276.50 | ...16.90 | (1.3%) |
Fewer Americans than forecast applied for unemployment benefits last week, a sign the job market is making progress as the economy grows. Jobless claims fell 14K to 298K, according to the Labor Dept. The forecast called for 303K. Continuing claims fell to the lowest level in more than 7 years. Employers are holding the line on dismissals as economic growth is projected to pick up, setting the stage for more hiring to meet demand. Waning claims also reinforce Federal Reserve policy makers’ view the labor market is strengthening, one reason they’re trimming monthly asset purchases. The 4 week average of claims rose to 301K from 296K in the prior week. The number on jobless benefit rolls declined 49K to 2.5K, the lowest level since Jun 2007 (before the last recession began). Last week included the 12th of the month, which coincides with the period the Labor Dept uses in its survey of employers to calculate monthly payroll growth. The employment report for Aug will be released on Sep 5.
Jobless Claims in U.S. Declined More Than Forecast Last Week
Federal Reserve Bank of Kansas City President Esther George said she’s encouraged by broad-based employment gains that show the economy is strong enough to withstand higher interest rates. “We have seen significant progress in the labor market over the last three years, and particularly this year,” George said at Jackson Hole, Wyoming. “As we look at the healing we’ve seen in the economy and that progress, we’re in a good place to begin talking about normalization.” She, who is hosting a 3-day Fed symposium, said policy makers have “every reason” to think about beginning to raise the benchmark interest rates above zero, where it’s been since Dec 2008. Minutes of the Jul FOMC meeting released yesterday showed Fed officials raising the possibility that they might increase rates sooner than they anticipated as they approach their goals for full employment & stable prices. Some participants “were increasingly uncomfortable” with forward guidance on keeping rates low for a “considerable time.” The jobless rate was 6.2% last month after falling in Jun to a 5 year low of 6.1%, a level policy makers had forecast it wouldn’t reach until the end of the year. The jobless rate now is “not far from what may be full employment,” George said. “Some of the policy benchmarks that we looked at and have been looking at for some time are already signaling that we should be above zero interest rates,” she added.
Fed’s George Says Job Gains Signal Rates Can Rise
An index of US leading indicators rose in Jul by the most in 4 months, as stronger job growth helps power the economy. The Conference Board’s index of leading indicators, a gauge of the outlook for the next 3-6 months, climbed 0.9% after a 0.6% gain in Jun. The forecast called for a 0.6% advance. More jobs are underpinning sentiment & demand among US households. Going forward, further gains in wages & improvement in the housing market will be needed to boost consumer spending & add additional momentum. 7 of the 10 indicators in the leading index contributed to the increase, led by declining jobless claims & more building permits. The Conference Board’s index of coincident indicators, a gauge of current economic activity, increased 0.2% after a 0.3% gain the prior month. The coincident index tracks payrolls, incomes, sales & production -- measures used by the National Bureau of Economic Research to determine the beginning and end of recessions. The gauge of lagging indicators also rose 0.2% in July.
Leading Economic Indicators in U.S. Rise by Most in Four Months
There is not a lot going on in the markets on light volume. Fighting in Ukraine is heating up ahead of meetings to calm that situation & Hamas is firing more rockets into Israel. Iraq forces with the help of US air power are have success in striking back at ISIL. In this semi vacation week, there is not a lot more to report. But Dow is over 17K & inches from reaching a new record high.
Dow Jones Industrials
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