US Jobless Claims Fall to Lowest Level Since July at 196,000

Summary

Michael McKee reports that US jobless claims fell to 196,000, the lowest since July, adding to signs of labor market stability. The Philadelphia Fed index showed a weaker headline but higher prices paid and received, keeping inflation pressure in focus. Housing starts fell 2.6%, and the 10-year Treasury yield moved lower as the curve flattened, potentially easing mortgage rates.

• Initial jobless claims fell 10,000 to 196,000, the lowest since July.
• The labor market appeared stable, with Kevin Warsh saying it can be ignored for now.
• The Philadelphia Fed headline index declined to 37.8 from 47.4.
• Prices paid and prices received rose, pointing to inflation pressure.
• Housing starts fell 2.6%, with not enough homes being built and rates too high.
• The Treasury yield curve flattened as the 10-year note yield came down.
• Lower 10-year yields could modestly reduce mortgage rates.