Thursday, March 06, 2008

Jobless Claims Fall, Pending Home Sales Above Estimates

- Initial Jobless Claims for this week fell to 351K versus estimates of 360K and 375K the prior week.

- Continuing Claims rose to 2831K versus estimates of 2810K and 2802K prior.

- Pending Home Sales for January were unch. versus estimates of a 1.0% decline and an upwardly revised 1.2% decline in December.

BOTTOM LINE: The number of Americans filing first-time claims for unemployment benefits declined more than forecast last week to a six-week low, Bloomberg reported. The four-week moving average of initial claims fell to 359,500 from 361,000 the prior week. The unemployment rate among those eligible for benefits, which tracks the US unemployment rate, remained steady at a historically low 2.1%. Challenger job cuts, reported yesterday, were down 14.2% year-over-year in February. Jobless Claims are still not at levels indicating a US I expect the job market to improve to more healthy levels in the second half of the year. economic contraction.

The number of Americans signing contracts to buy previously owned homes was unchanged in January, Bloomberg reported. Pending resales fell 6.1% in the South and 4.1% in the Northeast. They soared 13% in the West and rose .6% in the Midwest. Fed fund futures now imply a 78.0% chance for a 75 basis point cut at the upcoming Fed meeting, up from 54.0% yesterday. I still expect home sales to beat expectations this spring on pent-up demand, lower prices and lower mortgage rates.

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