Daily Commentary by Larry Baer: The
number of Americans filing first-time claims for government jobless benefits
was higher than expected for the third consecutive week. Initial claims for unemployment benefits
dropped by 1,000 during the week ended April 21st - a wide miss from
the majority estimate from economists calling for a drop of 11,000. This weekly data series is beginning to
suggest the labor sector is contracting after showing hopeful signs of
expansion during the last three months of 2011.
This morning's labor market news blends with a
string of other recent weak economic data to cause a growing concern that the
country may be far more vulnerable to European economic woes and a slowdown in China
than originally thought. Until/unless
stronger U.S.
economic data emerges - it will continue to be difficult for companies to feel
compelled to add headcount to their payrolls - and the background support for
steady to perhaps fractionally lower mortgage interest rates will remain in
place.
The Treasury Department will wrap-up this
week's three-part auction series with the sale of $29 billion of 7-year notes
this afternoon. Tuesday's 2-year note
sale and Wednesday 5-year note offering found solid demand - especially from
foreign investors. There is little
reason to believe the string of aggressive bidding will be diminished at
today's 7-year note sale. I'll post the
auction result on my website as soon as possible once bidding concludes at 1:00
p.m. ET.
THE
MARKET IS ALWAYS RIGHT! . YOU AND I ARE SOME OF THE TIME
