Fundamentals 9/29: Can Jobless Claims Hold Below 400k?
To so-called “final” GDP for 2ndQ2011 was adjusted upward to +1.3%. The GDP Deflator (an index of inflation weighted by how much each item contributes to GDP) was +2.5%. Final sales of domestic products was +1.6%.
Initial Jobless Claims
-391,000 for the week ending September 24
-Down 37,000 from previous week’s revised 422,250 (was 423k)
-4-week moving average was 417,000, down 5,250 from previous week
-Drop below critical 400k level
-But a Labor Department official attributed drop to technical issues and seasonal adjustment volatility rather than economic activity
Pending Home Sales
-Pending Home Sales Index: 88.6
-Prior was 89.7
-Pending Home Sales Index, Month/Month: -1.2%.
-The housing market is still very soft.