wmeubank@ocp.kcmo.com
NIKKO MARKET COMMENTS
Prepared by
The Nikko Securities Co. International, Inc.
Economic News
Jobless claims were low at 303,000 this week, after an upward revised 306,000 pace last week. Benefit recipients totaled 2.212 mn in the November 22 week, rising by 56,00 to partly unwind three consecutive drops amounting to 84,000. The insured unemployment rate stood at 1.9% in the November 22 period, up from the downward revised 1.8% (Wow! That's low!) rate on November 15. The ABC News Consumer Comfort index climbed to a ten-week high reading of 11, a tow-point gain in the week. Mortgage application volume increase for refinances and purchases probably helped by the lows 7.15% 30-year fixed mortgage rate this week. Nonfarm productivity for 97Q3 was revised lower to a 4.1% increase (versus 4.5% previously reported). Unit labor costs declined at a 0.2% rate (versus —0.3% in the first estimate). The changes reflect an updated (lower) GDP estimate for Q3. The new productivity and unit labor cost readings are still spectacularly favorable for the inflation assessment. The Challenger tally of layoff announcements held steady in November, rising by a mere 79 persons to total 42,241. This report shows no significant change in labor conditions.
Robert A. Brusca, Chief Economist
The Nikko Securities Co. International, Inc.
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