This morning’s weekly jobless claims were down 36,000, putting it at 383,000.
Some analysts on CNBC were hailing this as employment progress. But before liberals start celebrating, Rick Santelli threw some healthy skepticism on their joy.
“Initial jobless claims is about as worthless to follow as the unemployment rate. So many cross currents here. The stock market most likely is going to pay close attention to the stronger dollar. The dollar is distorted a bit because of what was going on with interest rates yesterday; what’s going on with China and rates; to decipher what’s going on with the UK post meeting.
“In the end you ought to watch the third year bond auction today and you want to be cognizant of the fact that other than certain fed officials, the higher yields, at least the part of it that is associated with higher commodity prices, that’s a freight train on the move and these higher rates with the weaker emerging markets could ultimately catch up to the equity Kool Aid.
“I’m not buying the weather related (causes). So many extensions and so many programs and so many different categories, I just don’t buy it.”
Steve Liesman asked isn’t the stock market a good indicator of where the economy is going?
“If you want a 4% unemployment rate, lop off another two million people in the work force. These statistics are not painting the true picture. The market gets it. Most people get it.”
Liesman interjected, “”If the market gets it, it’s up above 12,000. What exactly does it get?”
Santelli replied, “It gets that the equity market loves the fact that there are so many dicey aspects to the job market that keep the fed hooked in. They talk about how they like the economy and many analysts like you talk about how great the economy is that’s why interest rates are up. But it’s not creating the kind of jobs; it’s not coming back in housin; foreclosures, as we learn today, are going up; the structural issues that some are just debating now that have been around for 3 or 4 years are probably going to continue.”