Initial Jobless Claims Rise, Leading Indicators Rebound

- Initial Jobless Claims rose to 337K last week versus estimates of 312K and 309K the prior week.

- Continuing Claims rose to 2534K versus estimates of 2525K and 2515K prior.

- Leading Indicators for September rose .3% versus estimates of a .3% gain and a downwardly revised .8% decline in August.

BOTTOM LINE: The number of Americans filing first-time claims for unemployment benefits increased more than forecast last week, Bloomberg reported. The four-week moving average of claims rose to 316,500 from 310,500 the prior week. The unemployment rate among those eligible to collect benefits, which tracks the US unemployment rate, held steady at a historically low 1.9%. I continue to expect the job market to remain healthy over the intermediate-term without generating substantial unit labor cost increases.

The index of leading US economic indicators rose in September as stock prices climbed and job cuts fell, Bloomberg reported. US stocks turned in the best September showing since 1998, which boosted the indicator. As well, jobless claims fell during the month. I still expect US GDP growth to average around 2-2.5% over the intermediate-term. However, the third quarter will likely come in around 2.5-3% growth.