Thursday, August 05, 2004


Unemployment claims lower than expected, but energy prices a concern.

Last week's unemployment numbers show a slight improvement, but energy prices are a major concern for America's chief economists. Initial jobless claims fell to 336,000, slightly lower than a projection of 340,000. But the bigger news was how bond markets responded. Treasury Secretary Snow said on radio station WAKR this morning that "soaring oil prices pose a threat to the economy."

The bond market responded by decreasing yields 3 bps in early trading. Bond yields affect interest rates.

More importantly, July's unemployment numbers are due early Friday morning and should give the Fed more information about the American job "recovery."

This news brought to you by Keller GSM.

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