At first glance the jobless claims dropping 35,000 from 388,000 to 353,000 looks good. However, it’s a continuation of the yo-yo swings we’ve been having. Even CNBC tool Steve Liesman couldn’t get excited about the drop calling the numbers for July “squirrely” and undependable.
Durable goods looked good unless you actually examine the numbers. Their rise of 1.6% hides a drop from .8% to -1.1%. The spike was all on transportation goods, especially aircraft parts and machinery. Everything else – computers, electronics, electrical equipment and machinery of all kinds saw orders plunge.
So forget the breathless hype about improvement in the economy. A better indicator will be tomorrow’s GDP number. The drought, whose effects have not begun to be felt, will further drag us down with food prices soaring.
The stock rise on this news is really about Wall St.’s hope that there will be more money printing, i.e. QE3.