Economy, Jobs, Gas

[RunInRed 19,632]

But on the bright side...the DOW was up a couple hundred points earlier this week

AP

Jobless Claims Shoot Up to 2-Year High

Thursday April 3, 11:16 am ET

By Jeannine Aversa, AP Economics Writer

Jobless Claims Shoot Up to Highest Point Since September 2005, More Strains Evident in Economy

WASHINGTON (AP) -- The number of new people signing up for unemployment benefits last week shot up to the highest level in more than two years, fresh evidence of the damage to a national economy clobbered by housing, credit and financial crises.

The Labor Department reported Thursday that new applications filed for unemployment insurance jumped by a seasonally adjusted 38,000 to 407,000 for the week ending March 29. The increase left claims at their highest point since Sept. 17, 2005, following the blows of the devastating Gulf Coast hurricanes.

"This report supports the view that the jobs market is deteriorating toward recessionary conditions," said T.J. Marta, a fixed-income strategist at RBC Capital Markets.

The latest snapshot of labor activity was worse than economists had anticipated. They had predicted claims would be much lower, around 365,000.

A government analyst said some of the big increase in claims may have been related to an early Easter holiday this year, where claims that weren't filed or processed during the holiday week were pushed forward into the following week.

Still, looking at the longer-term trend there was little doubt of the pickup in unemployment filings. A year ago, new claims stood at 319,000.

Meanwhile, the number of people continuing to collect unemployment benefits rose by a sharp 97,000 to 2.94 million for the week ending March 22, the most recent period for which that information is available. That was the highest since July 17, 2004.

The economy is suffering from a trio of mighty blows -- a housing collapse, a credit crunch and a financial system in turmoil. That's causing people and businesses to hunker down, crimping spending, capital investment and hiring. Those things in turn further weaken the economy, in a vicious cycle.

For the first time, Federal Reserve Chairman Ben Bernanke acknowledged on Wednesday said the country could be heading toward a recession. Many other economists and the public believe it's already there.

Employers cuts jobs in January and February, and economists are predicting more losses when the government releases the March employment report on Friday.

The nation's unemployment rate, now at 4.8 percent, is expected to rise to 5 percent in March. The jobless rate could climb to 5.5 percent or higher by the end of this year, according to some analysts' projections.

http://biz.yahoo.com/ap/080403/economy.html

AP

Gas Prices Rise to New National Record

Thursday April 3, 1:44 pm ET

By John Wilen, AP Business Writer

Retail Gas Prices Rise to New Record, Following Gains by Oil and Gasoline Futures

NEW YORK (AP) -- Gasoline prices extended their record run at the pump Thursday, but took a breather in futures trading as investors collected profits from the previous session's huge advance.

Crude oil futures, meanwhile, fluctuated as some investors bought on expectations that the dollar will continue its protracted decline while others sold as the greenback firmed slightly.

At the pump, the national average price of a gallon of gas rose 0.2 cent overnight to $3.289 a gallon, according to AAA and the Oil Price Information Service. That's the latest in a string of records set as gas prices have followed surging oil futures higher.

In futures trading Thursday, May gasoline fell 3.44 cents to $2.7392 a gallon on the New York Mercantile Exchange, dropping back after soaring 13.44 cents to a new record of $2.7736 on Wednesday.

Wednesday's surge in gas futures, accompanied by a big gain in oil prices, is expected to send prices even higher at the pump in the near future; retail prices follow the futures market, although with some time lag. Gas got a boost from an Energy Department report Wednesday that gasoline supplies fell last week while demand rose for the first time since January.

The report also showed that refiners are holding back on producing gasoline due to low refining profit margins. The combination of low production and higher demand during peak summer driving season -- and high crude prices -- could boost gas prices even further into record territory.

"There's always concern ahead of the driving season," said Tim Evans, an analyst at Citigroup Inc. in New York.

The Energy Department expects gas prices to peak near $3.50 a gallon later in the spring. Many analysts think prices could rise as high as $3.75 or $4.

In oil trading Thursday, May light, sweet crude rose 7 cents to $104.90 on the New York Mercantile Exchange, but alternated between gains and losses.

The continuing advance in energy prices has raised concerns about the impact of inflation on consumer spending. While gas prices are hurting consumers' budgets, so is the price of diesel, used to transport the vast majority of the world's food, consumer and industrial goods. Diesel slid 0.2 cent overnight to a national average of $4.023 a gallon, but remains within 2 cents of a record set in late March.

Oil has taken much of its price direction in recent months from the dollar. Commodities such as oil become attractive to investors seeking a hedge against inflation when the greenback is falling. The trend typically reverses when the dollar strengthens.

On Thursday, the dollar gained ground, prompting some selling. But other investors were more focused on dismal economic reports. The Labor Department said jobless claims jumped last week to their highest level in more than two years, and the Institute for Supply Management said the economy's service sector shrank in March for the third straight month.

In the sort of "bad news is good news" logic the market often employs, some investors took the reports as a sign the Fed will sharply cut interest rates later in the year to boost the economy. Rate cuts tend to weaken the dollar.

"It looks like we're running to the commodities again for cover," said Phil Flynn, an analyst at Alaron Trading Corp. in Chicago.

In other Nymex trading Thursday, May heating oil futures rose 1.09 cents to $2.9619 a gallon, while May natural gas futures fell 25.3 cents to $9.579 per 1,000 cubic feet. The Energy Department said natural gas inventories fell last week by 29 billion cubic feet, less than analysts had expected.

In London, May Brent crude fell 39 cents to $103.36 a barrel on the ICE Futures exchange.

http://biz.yahoo.com/ap/080403/oil_prices.html

[BamaGrad03 0]

Specluative futures markets have nothing to do with current economic policy in the white house. And are not indicative of a bad or good economy. Especially considering oil prices have been going up in the face of both good and bad economic news.

Unemployment rate at 4.8 percent is a spectacular number historically speaking. During 2005 our economy was NOWHERE NEAR a recession, and the rate was comparable.

And the dow wasn't up "a couple hundred points"...it ended up over 400 points for the day and is rapidly nearing 13,000.

Like Otter said earlier...considering the economic metrics coming out now...and the fact that people are using them to project economic worry...really shows how good shape our economy is in.

[RunInRed 19,632]

This isn't some liberal hypothesis:

"For the first time, Federal Reserve Chairman Ben Bernanke acknowledged on Wednesday said the country could be heading toward a recession. Many other economists and the public believe it's already there"

[LegalEagle 22]

And the dow wasn't up "a couple hundred points"...it ended up over 400 points for the day and is rapidly nearing 13,000.

Linky Dinky?

[BamaGrad03 0]

And the dow wasn't up "a couple hundred points"...it ended up over 400 points for the day and is rapidly nearing 13,000.

Linky Dinky?

http://money.cnn.com/quote/chart/chart.htm...Submit1=Refresh

[LegalEagle 22]

And the dow wasn't up "a couple hundred points"...it ended up over 400 points for the day and is rapidly nearing 13,000.

Linky Dinky?

http://money.cnn.com/quote/chart/chart.htm...Submit1=Refresh

Your chart had no numbers. The bottom line is that the dow has not "ended up over 400 points" for any day this week. Maybe today. . . . hmmmmm.

[RunInRed 19,632]

Date Open Close

3-Apr-08 12,604.69 12,626.03

2-Apr-08 12,651.67 12,608.92

1-Apr-08 12,266.64 12,654.36

31-Mar-08 12,215.92 12,262.89

http://finance.yahoo.com/q/hp?s=%5EDJI

[BamaGrad03 0]

And the dow wasn't up "a couple hundred points"...it ended up over 400 points for the day and is rapidly nearing 13,000.

Linky Dinky?

http://money.cnn.com/quote/chart/chart.htm...Submit1=Refresh

Your chart had no numbers. The bottom line is that the dow has not "ended up over 400 points" for any day this week. Maybe today. . . . hmmmmm.

http://money.cnn.com/2008/04/01/markets/ma...=rss_topstories

My sincerest apologies...it was 391 points. I am so very sorry for my original statement being 2.5% short.

[LegalEagle 22]

Apology accepted. Things stated as fact that are not factual do irritate me however.