New Jobless Claims Jump More Than Expected, Personal Spending Rises
New jobless claims last week jumped 17,000 over the previous week, coming in at 551,000, higher than the 531,000 claims expected.
Continuing jobs claims came in at 6.09 million, slightly less than expected.
In other data, personal spending rose 1.3 percent, which was better than the 1.1 percent forecast.
Also, personal income rose 0.2 percent, barely beating the forecast of 0.1 percent.
The jobless claims news is bad news and the market probably will act accordingly. It's also a precursor to tomorrow's September national unemployment rate, which is expected to rise from 9.7 percent to 9.8 percent. Economists expect the number to crest above 10 percent. No real jobs recovery can begin until the weekly new claims number gets down into the 400,000s.
It's a big day for economic data, and stock market futures are weak in anticipation. We'll know a little more about the state of the economy by 10 a.m. today. In addition to the jobless claims and personal income data just released, here's what's coming up in the next 90 minutes:
-- Fed Chairman Ben Bernanke testifies before the House Financial Services committee, speaking on consumer financial protection. 9 a.m.
-- The Institute for Supply Management issues its monthly manufacturing data, painting a picture of the nation's factory situation. Out at 10 a.m.
-- Pending home sales come out at 10 a.m. Sales will be goosed by the $8,000 first-time home buyer credit, which expires at the end of next month. 10 a.m.
-- Construction spending. This is a gauge of how much companies are spending building stuff; more accurately, it's a gauge of whether they can get credit to do so. 10 a.m.
-- September auto sales, probably starting about noon and coming out all day. We'll see how sales rebound in the post-Cash for Clunkers era.
-- Frank Ahrens
Sign up to get The Ticker on Twitter
October 1, 2009; 8:48 AM ET
Categories: The Ticker | Tags: Ben Bernanke, auto sales, jobless claims, personal income
Save & Share: Previous: IMF: Global Economy Has 'Turned the Corner' But Troubles Remain
Next: Bernanke: Stronger Financial Regulation Needed
Posted by: Bcamp55 | October 1, 2009 9:16 AM | Report abuse
Posted by: youmustbejoking1 | October 1, 2009 9:22 AM | Report abuse
Posted by: morphylius | October 1, 2009 10:30 AM | Report abuse
Posted by: rryan007 | October 1, 2009 10:32 AM | Report abuse
Posted by: brattykathyi1 | October 1, 2009 10:35 AM | Report abuse
Posted by: KBlit | October 1, 2009 10:40 AM | Report abuse
Posted by: charlietuna666 | October 1, 2009 10:47 AM | Report abuse
Posted by: penniless_taxpayer | October 1, 2009 3:25 PM | Report abuse
Posted by: penniless_taxpayer | October 1, 2009 3:28 PM | Report abuse
The comments to this entry are closed.