Drop in Unemployment Claims

After many months we got a reading in unemployment claims which was below 400K, they came in at 398K. I think that is the main reason you are seeing a bit of a rise in the market today. As I have said before the claims data is quite volatile so we will need to see a few more readings below 400K to conclude that the labor market is starting to improve again.

Overall looking at the strong earnings from companies my current thoughts are that the economy could actually be ready to lift out of this soft patch if these debt limit issues get out of the way. I hope this stalemate does not last long enough that it sends the economy into a negative feedback cycle. While these debt talks continue I am sure it is affecting the psychology of consumers and a lot of companies might be on a wait and see mode.

Following is an interview on CNBC from the CEO of Ryder which leases transportation and supply chain infrastructure for a very large range of companies. He sounded pretty upbeat and from his customer activity he thinks the economy is going to improve.

Ryder CEO interview

 

Advertisements
This entry was posted in Uncategorized. Bookmark the permalink.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s