The economic reports keep coming out regardless of the holidays and the Mayan prophecy. Thursday’s reports show a higher tally in weekly jobless claims and a higher reading on gross domestic product.
As far as GDP is concerned, this was yet another revision, and the final one (supposedly) to the third-quarter figure. Third-quarter GDP was revised higher to 3.1% from the prior 2.7%. Dow Jones and Bloomberg both were calling for 2.8% growth. The GDP deflator, the price index, was kept the same at 2.7%, and that matched the Bloomberg estimate from its pool of economists.
Weekly jobless claims are heading the wrong direction if the Fed’s 6.5% unemployment threshold for low rates is going to get any reprieve. Weekly claims rose by 17,000 to 361,000 last week, and that was after the prior week was revised higher by 1,000 claims. Dow Jones had an expectation of 361,000 and Bloomberg was slightly lower with a consensus of 359,000.
The GDP figure was revised higher, but this also reflects the data that had come in for the period of July to September. That was before the election, before the fiscal cliff and before some of the European resolutions had been more clear.
We do not expect the markets to be rocketed higher or lower on either one of these reports this morning.
JON C. OGG
Is Your Money Earning the Best Possible Rate? (Sponsor)
Let’s face it: If your money is just sitting in a checking account, you’re losing value every single day. With most checking accounts offering little to no interest, the cash you worked so hard to save is gradually being eroded by inflation.
However, by moving that money into a high-yield savings account, you can put your cash to work, growing steadily with little to no effort on your part. In just a few clicks, you can set up a high-yield savings account and start earning interest immediately.
There are plenty of reputable banks and online platforms that offer competitive rates, and many of them come with zero fees and no minimum balance requirements. Click here to see if you’re earning the best possible rate on your money!
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.