Positive Reports on Weekly Jobless Claims and on Personal Income
Jun 27th 2013 8:50AM
We have two key pieces of employment data for Thursday's key economic reports. Weekly jobless claims data is out from the U.S. Labor Department and personal income and spending data for May from the Commerce Department.
The Labor Department's reading on weekly jobless claims came in at 346,000, versus the 345,000 consensus estimate from Bloomberg. The prior week was revised to 355,000 from 354,000. While this is a drop from the prior week, it is just too close to estimates to create any serious momentum one way or another. The army of unemployed, measured by the continuing jobless claims with a one-week lag, fell by 1,000 to 2,965,000.
The Commerce Department reported on personal income and spending for the month of May. While this data is now almost a month old, it is more out of line with estimates and that may matter to some market watchers. Personal income rose by 0.5% in May, versus the Bloomberg consensus estimate of only 0.2%. Spending rose by 0.3% in May, but that is just under the Bloomberg consensus of 0.4% for the month.
Stocks and bonds had been on a path for gains on Thursday, and the S&P 500 futures were up eight points and the DJIA futures were up 60 points on last look. We do not expect any major change arising from the Labor Department report nor from the Commerce Department report.
The yield on the 10-year note is down again and is challenging the 2.50% level on the downside. Today's data should do little to alter any Federal Reserve communication as well.
Filed under: Economy