“Disappointing” initial claims for unemployment are no such thing

“Disappointing” initial claims for unemployment are no such thing

The stock market is selling off on a “disappointing” increase in initial claims for unemployment. First-time claims for unemployment benefits rose to 397,000 for the week ending March 5 from 371,000 for the previous week. Traders, of course, know that the week-to-week swings in the initial claims number are meaningless. But if you need some volatility to make some trading profits, this data is as good an excuse as any.

Fourth quarter GDP growth drops to 2.8% on revision. For the year the economy shows its fastest growth in five years

Fourth quarter GDP growth drops to 2.8% on revision. For the year the economy shows its fastest growth in five years

Revised GDP numbers show that the U.S. economy grew by 2.8% in the fourth quarter. Although that is still above the 2.6% annual growth recorded in the third quarter, it is a disappointing drop from the 3.2% initial estimate for fourth quarter growth released last month. After the revision the growth rate for all of 2010 stands at 2.8%. That’s the highest annual rate in five years and contrasts to a 2.6% drop in 2009.