May

29

Before The Bell-Jobless Rate Continues Climb

By Chuck

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The Continuing Claims number is disconcerting, as it shows people are not finding jobs to replace the ones they lost.  Initial claims are up, too.  Futures dropped on the news, and are still down at this time.  As for the trading day ahead: volatility, wild swings (mood swings) and partly cloudy skies.  Sorry, I feel like I’m giving a weather report.  Bottom line, there isn’t anything in the economic data to cheer about.  Don’t shoot the messenger, it is what it is.  I’m still favoring a daytrade short on IBM on signs of weakness.  CAT announced an order from General Moly worth $80M over the next 3 years.  We’ll see how traders react to that news, keeping an eye on the trendline and support/resistance that Chuck showed on the chart last night.  The order is better than nothing, but $80M over 3 years is a drop in the bucket.

INITIAL JOBLESS CLAIMS: 372K V 370KE; CONTINUING CLAIMS: 3.104M V 3.080ME
- Prior Initial Jobless Claims revised from 365K to 368K
- Prior Continuing Claims revised from 3.073M to 3.068M

Q1 PRELIMINARY GDP ANNUALIZED: 0.9% V 0.9%E; PERSONAL CONSUMPTION: 1.0% V 1.0%E
- No Revisions

Q1 PRELIMINARY GDP PRICE INDEX: 2.6% V 2.6%E; CORE PCE Q/Q: 2.1% V 2.2%E
- No Revisions