THE JOB MARKET
Initial jobless claims dropped by 33,000 last week. Quite unexpected by analysts to say the least. The market reacted like it was the best news in weeks.... Which it was. With the four week average remaining at a high 369,500, and numbers dropping only as benefits end for the unemployed. With the number of layoff announcements this week, with AT&T announcing a 4,000 cut, many economists are waiting for the next round of unemployment data before calling it a soured market. Next week will have the latest unemployment numbers, and hourly earnings coming out, so keep an eye in the news for that.
BOND MARKET
Remember when bonds go down rates go up
The bond started off strong this week but took a turn for the worse this after some better than expected earnings reports came out from the likes of Yahoo and Ford Motors. Lower than expected unemployment also boosted the Dow and hurt the bond. The biggest bond and stock killer this week is once again OIL!!! With it tipping the $120 mark this week, and not showing signs of retreat (boy, you fire on one little boat) oil will continue to damage both markets. The bond has dropped past the 50 and 100 day moving average and is heading right for the 200 day moving average. If it breaks past that level of support, we can look at rates staying higher in the coming weeks.
HOUSING MARKET
Sales of New homes fell to their lowest levels in 16 ½ years. Add to that existing home sales falling 2% last month and a 7.7% decline in value from last year, and you have some economists feeling that this may surpass the Great depression in housing issues.... I like to believe that Santa is real and that we will bounce back from this. Although 18% of homes for sale have negative equity, 82% still don't. To me that sounds like a pretty full glass. Locally we are down both in sales and sale price. Same month sales were not this low since 2004.
