In this morning’s data, Initial Jobless Claims were 853,000 for the week ending December 5th, much higher than the 725k expected and Continuing Claims were 5,757,000 for the week ending November 28th, also more than expected. Meanwhile, the Consumer Price Index increased 0.2% in November and is up 1.2% on an annual basis, a tick higher than expected. Prices for Fuel Oil and Utility Gas Service increased in the month, while prices for Used Cars and Trucks decreased. The core rate, which excludes food and energy prices, was also up 0.2% in November and up just 1.6% on an annual basis. Overall, the initial claims data indicates more stress for the labor market as COVID-19 cases have increased in recent weeks bringing additional restrictions. The results highlight the importance of vaccines and are prodding further negotiation on stimulus efforts. Inflation remains benign as annual core rates are the same as the previous month and well below the Federal Reserve’s 2% average target. In all, bond yields are little changed and equity futures are lower as we head into the market open.
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