US Jobless Claims Fall, Housing Starts Drop in April

Summary

Mike McKee reports on US jobless claims, which were nearly unchanged at 209,000, and notes potential distortion from fraud prevention. The Philadelphia Fed index plunged sharply, while housing starts fell 2.8% but building permits rose. McKee also previews upcoming S&P Global PMI data for May.

• Initial jobless claims fell slightly to 209,000, showing little change.
• Continuing claims ticked up modestly to 1,782,000.
• Bloomberg Economics suggests jobless claims could be distorted by state anti-fraud efforts.
• Philadelphia Fed manufacturing index dropped to -0.04 from 26.7, a steep decline.
• Housing starts declined 2.8% in April to a 1.465 million annualized rate.
• Building permits rose 5.8%, hinting at potential future construction.
• Markets await S&P Global US manufacturing and services PMI preliminary readings for May.