First-time jobless claims fell by 34,000 to a seasonally adjusted 388,000 in the week ending December 25, the Labor Department reported this morning, the lowest level since July 2008.
Economists had expected claims to have fallen to 415,000 from a revised 422,000 the previous week. Initial jobless claims peaked at 651,000 in March 2009.
The four-week average of new claims, which smooths out weekly volatility, fell by 12,500 to 414,000, which was also the lowest level since July 2008.
The number of people filing for continuing claims rose by 57,000 to a seasonally adjusted 4.13 million in the week ending Dec. 18, but the four-week average fell 37,250 to 4.12 million, the lowest level since November 2008. The continuing claims number does not include people receiving extended benefits under federal programs.
The Labor Department will issue its December jobs report next Friday. Economists expect that about 100,000 new jobs were added to the economy in December.
Thursday, December 30, 2010
Wednesday, December 29, 2010
Blizzard Postpones $1 Billion in Retail Sales
The day-after Christmas blizzard that walloped the East Coast cost retailers about $1 billion in delayed sales, according to ShopperTrak.
Customer traffic at malls and stores in the Northeast fell 6.1% on the day after Christmas from the same day last year, ShopperTrak said, and total U.S. foot traffic was 11.2% below what it would have been had the blizzard not hit.
On Monday, December 27th, shopping traffic across the country was down 13.9%, with foot traffic in the Northeast tumbling 42.9%. Snowfalls totaled up to 30 inches in some New York City suburbs, stranding people at home and causing massive travel and commuting delays. Other regions of the country averaged a 13% gain on the 27th.
“As expected the 2010 blizzard throughout the Northeast halted nearly all retail visits and spending during a period that is fairly crucial for retailers,” ShopperTrak Bill Martin said in a press release. “And at this point the prospect of momentarily pausing a potential $1 billion in sales has the collective industry holding its breath."
Martin expects "some retail strength later this week and into the weekend as folks begin to dig out," but is cautious about whether levels will "recover in time to boost December sales and the overall holiday shopping season.”
ShopperTrak records sales and customer traffic at more than 70,000 stores and malls across the country.
Customer traffic at malls and stores in the Northeast fell 6.1% on the day after Christmas from the same day last year, ShopperTrak said, and total U.S. foot traffic was 11.2% below what it would have been had the blizzard not hit.
On Monday, December 27th, shopping traffic across the country was down 13.9%, with foot traffic in the Northeast tumbling 42.9%. Snowfalls totaled up to 30 inches in some New York City suburbs, stranding people at home and causing massive travel and commuting delays. Other regions of the country averaged a 13% gain on the 27th.
“As expected the 2010 blizzard throughout the Northeast halted nearly all retail visits and spending during a period that is fairly crucial for retailers,” ShopperTrak Bill Martin said in a press release. “And at this point the prospect of momentarily pausing a potential $1 billion in sales has the collective industry holding its breath."
Martin expects "some retail strength later this week and into the weekend as folks begin to dig out," but is cautious about whether levels will "recover in time to boost December sales and the overall holiday shopping season.”
ShopperTrak records sales and customer traffic at more than 70,000 stores and malls across the country.
Tuesday, December 28, 2010
Consumer Confidence Slips
U.S. consumers were feeling glum about the economy in December, according to The Conference Board's monthly gauge.
The Conference Board's index of consumer sentiment fell to a reading of 52.5 this month from an upwardly revised 54.3 in November. Economists had been looking for a reading of 56.
Worries about jobs crept back into consumers' minds this month, with 46.8% of consumers polled saying that jobs are hard to get, up from 46.3% in November, the highest level since February. And 3.9% of those polled said jobs were plentiful, down from 4.3% last month. The unemployment rate rose to 9.8% in November from 9.6% in October.
"Consumers' assessment of the current state of the economy and labor market remains tepid, and their outlook remains cautious," said Lynn Franco, director of the Conference Board's consumer research center. "Thus, all signs continue to suggest that the economic expansion will continue well into 2011, but that the pace of growth will remain moderate."
The index has been below 90, which indicates a healthy economy, since December 2007, when the recession first began.
The Conference Board's index of consumer sentiment fell to a reading of 52.5 this month from an upwardly revised 54.3 in November. Economists had been looking for a reading of 56.
Worries about jobs crept back into consumers' minds this month, with 46.8% of consumers polled saying that jobs are hard to get, up from 46.3% in November, the highest level since February. And 3.9% of those polled said jobs were plentiful, down from 4.3% last month. The unemployment rate rose to 9.8% in November from 9.6% in October.
"Consumers' assessment of the current state of the economy and labor market remains tepid, and their outlook remains cautious," said Lynn Franco, director of the Conference Board's consumer research center. "Thus, all signs continue to suggest that the economic expansion will continue well into 2011, but that the pace of growth will remain moderate."
The index has been below 90, which indicates a healthy economy, since December 2007, when the recession first began.
Monday, December 27, 2010
Copper Closes at Record
Copper for March delivery rose 2.15 cents, or 0.5%, to close at $4.28 a pound today, the highest closing price ever for the commodity. Earlier in the day, copper hit $4.2985 a pound, an all-time record.
Copper climbed despite a surprise move on Saturday by the People’s Bank of China to increase its lending and deposit rates by a quarter of a percentage point. Prices of the red metal have been rising in recent months amid increased demand from emerging markets, including China, which is the world's biggest user.
"Even though China raised rates they're continuing to buy metal," George Gero, vice president with RBC Capital Markets Global Futures, told Dow Jones Newswires.
A supply shortage also helped boost prices today. The world's third biggest copper mine, the Collahuasi mine in Chile, halted sales contracts a week ago after an accident at its port.
Trading was thin, however, due to a massive snowstorm on the East Coast.
Copper climbed despite a surprise move on Saturday by the People’s Bank of China to increase its lending and deposit rates by a quarter of a percentage point. Prices of the red metal have been rising in recent months amid increased demand from emerging markets, including China, which is the world's biggest user.
"Even though China raised rates they're continuing to buy metal," George Gero, vice president with RBC Capital Markets Global Futures, told Dow Jones Newswires.
A supply shortage also helped boost prices today. The world's third biggest copper mine, the Collahuasi mine in Chile, halted sales contracts a week ago after an accident at its port.
Trading was thin, however, due to a massive snowstorm on the East Coast.
Wednesday, December 22, 2010
Existing Home Sales Rise
Sales of previously owned homes rose 5.6% to a 4.68 million annualized rate in November, according to the National Association of Realtors.
While it was the third gain in four months, sales were down 27.9% from year-ago levels, which was the initial deadline for the first-time homebuyer's tax credit.
Distressed homes made up 33% of sales in November, down slightly from 34% in October and the same as November 2009.
Purchases of single-family homes rose 6.7% to a 4.15 million annual rate in November from October, but sales of condominiums and co-ops fell 1.9% to 530,000.
NAR Chief Economist Lawrence Yun was optimistic about 2011. “Continuing gains in home sales are encouraging, and the positive impact of steady job creation will more than trump some negative impact from a modest rise in mortgage interest rates, which remain historically favorable,” he said.
The inventory of homes on the market fell to 3.71 million, or 9.5 months of supply, from 3.86 million, or 10.5 months of supply. The median price of all existing homes sold during November was $170,600, up just 0.4% from a year ago.
While it was the third gain in four months, sales were down 27.9% from year-ago levels, which was the initial deadline for the first-time homebuyer's tax credit.
Distressed homes made up 33% of sales in November, down slightly from 34% in October and the same as November 2009.
Purchases of single-family homes rose 6.7% to a 4.15 million annual rate in November from October, but sales of condominiums and co-ops fell 1.9% to 530,000.
NAR Chief Economist Lawrence Yun was optimistic about 2011. “Continuing gains in home sales are encouraging, and the positive impact of steady job creation will more than trump some negative impact from a modest rise in mortgage interest rates, which remain historically favorable,” he said.
The inventory of homes on the market fell to 3.71 million, or 9.5 months of supply, from 3.86 million, or 10.5 months of supply. The median price of all existing homes sold during November was $170,600, up just 0.4% from a year ago.
Tuesday, December 21, 2010
Nike Tops Expectations, but Future Orders Miss
Nike (NKE) late Tuesday said it earned $457 million, or 94 cents per share, in its fiscal second quarter, up from $375.4 million, or 77 cents per share, in the same quarter a year ago. Analysts had been looking for 88 cents per share.
Sales rose to $4.84 billion from $4.41 billion a year earlier, topping expectations of $4.81 billion.
Future orders slated for delivery from between December 2010 and April 2011 rose 11% from a year ago to $7.7 billion, which was below analysts' expectations.
“As supply and demand find a new normal in the recovering economy, our industry is going to experience margin pressure due to rising input costs,” said CEO Mark Parker.
Shares of Nike fell $5.34, or 5.8%, to $86.96 after the close.
Sales rose to $4.84 billion from $4.41 billion a year earlier, topping expectations of $4.81 billion.
Future orders slated for delivery from between December 2010 and April 2011 rose 11% from a year ago to $7.7 billion, which was below analysts' expectations.
“As supply and demand find a new normal in the recovering economy, our industry is going to experience margin pressure due to rising input costs,” said CEO Mark Parker.
Shares of Nike fell $5.34, or 5.8%, to $86.96 after the close.
Monday, December 20, 2010
Adobe Tops Expectations
Adobe Systems (ADBE) had a good fiscal fourth quarter.
The graphic-design software company late Monday reported earnings excluding items were 56 cents per share, topping analysts' estimates of 52 cents per share. Revenue was $1 billion, also ahead of expectations for $988 million.
Adobe, whose Creative Suite 5 includes Photoshop and Adobe Illustrator, forecast earnings between 54 cents and 59 cents for its current first quarter; the consensus estimate is for 51 cents per share. Adobe also forecast revenue of $1 billion to $1.05 billion, which would top analysts' expectations of $991.9 million.
"We posted our first billion dollar quarter and record annual revenue in 2010, driven by outstanding performance across all of our major businesses," Adobe CEO Shantanu Narayen said.
Shares of the stock rose $1.48, or 5.1%, to $30.66 in after-hours trading.
The graphic-design software company late Monday reported earnings excluding items were 56 cents per share, topping analysts' estimates of 52 cents per share. Revenue was $1 billion, also ahead of expectations for $988 million.
Adobe, whose Creative Suite 5 includes Photoshop and Adobe Illustrator, forecast earnings between 54 cents and 59 cents for its current first quarter; the consensus estimate is for 51 cents per share. Adobe also forecast revenue of $1 billion to $1.05 billion, which would top analysts' expectations of $991.9 million.
"We posted our first billion dollar quarter and record annual revenue in 2010, driven by outstanding performance across all of our major businesses," Adobe CEO Shantanu Narayen said.
Shares of the stock rose $1.48, or 5.1%, to $30.66 in after-hours trading.
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