Merk Investements: Jobless Claims

Initial weekly claims for the week ending September 6 declined to 445K vs. a revised 451K posted previously. The four-week moving average remained at 440K and continuing claims, which are released with a one week lag, jumped to 3.525mln.

The increase in claims is still dealing with the extension of jobless benefits and some volatility caused by the recent the storms in the Southeast. However, the continuing claims number continues to be the major problem. The move to 3.525mln tends to support the recent increase to 6.1% in the unemployment rate and probably dashes hopes of a retracement in the rate of unemployment back below 6.0% ahead of the September non-farm payroll report. This data does paint a rather bleak picture for the labor sector going forward through the remainder of the year.

This report was prepared by Merk Investments LLC, and reflects the current opinion of the author. It is based upon sources and data believed to be accurate and reliable. Opinions and forward looking statements expressed are subject to change without notice. This information does not constitute a solicitation or an offer to buy or sell any investment product, nor provide investment advice. Merk Investments does not own any of the stocks mentioned; this is not an offer to buy or sell any security mentioned.

Merk Investments: Jobless Claims: Week Ending September 6