Economics Update

We have good news on the jobs front, with both new and continuing claims claims falling this week.

Continuing claims fell by 15K to 6,740,000, the first time that they have fallen since January 3.

We also have the rather Dickensian named Challenger Gray & Christmas reporting that corporate layoff plans fell in May.

Meanwhile, the consumer economy continues in the doldrums, with MasterCard announcing that consumer spending continues to fall, though not as quickly as earlier in the year, and the retail chain's monthly sales reports missing expectations, though the 800 pound evil gorilla in the room, Wal Mart, has stopped reporting monthly sales figures.

Mortgage rates are continuing their climb, with the rate for a 30 year fixed mortgage hitting a 6 month high.

On the other side of the pond, both the European Central Bank and the Bank of England left their benchmark rates unchanged, which drove the dollar down, because there had been some expectation of a rate cut priced in.

Meanwhile, in energy, Goldman-Sachs predicted higher oil prices later this year, which, along with the employment data, pushed the price of oil up.