Jobless claims plummet; housing starts drop
Posted January 19, 2012
Fifty thousand fewer jobless claims this week – the biggest one week drop in over six years.
The total number of people seeking unemployment claims is now at its lowest level since April 2008. In a more traditional market, traders would have reacted strongly to this data, but given the current focus strategy of the markets, the reaction was fairly tame.
Disappointing housing starts numbers also didn’t do much to rattle the markets. Starts were down 4.1 percent in December vs. a 9.1 percent increase in November.
We have seen slight upward pressure on Mortgage Rates/Treasuries today due to confident comments out of Europe. We’ll be watching the Greek Debt conversation closely over the next few days – as well as listening very closely to the whispers from Washington on the QE3 discussion. Is another Fed movement imminent? Stay tuned…