Productivity jumps, labor costs ease, layoffs edge higher

Summary

CNBC's Rick Santelli reviewed the latest U.S. economic data from the CME, including initial and continuing jobless claims, third-quarter productivity, unit labor costs, and the trade balance. He characterized labor claims as well-behaved, productivity as strong, and falling unit labor costs as good news. The trade deficit narrowed sharply to $29.4 billion, but he noted the drop in imports could reflect either reshoring/export policy or weaker demand. He also noted little change in 2-year and 10-year interest rates.

• Initial jobless claims came in at 208,000, below estimates, and were described as well-behaved.
• Continuing claims were 1.914 million, near estimates and under 1.9 million.
• Q3 productivity rose 4.9%, with the prior quarter revised to 4.1%, the highest since Q3 2020.
• Unit labor costs fell 1.9%, with the prior quarter revised to -2.9%, which Santelli called good news.
• The trade deficit narrowed to $29.4 billion versus expectations around $58 billion and $136 billion in March.
• Imports fell and exports rose; Santelli said the reason is ambiguous, possibly policy-driven or weaker demand.
• Two-year and ten-year interest rates were basically unchanged.
• No explicit trade recommendations were made.