Jobless Claims in U.S. Declined by 11,000 to 457,000

Last week the number of first-time jobless claims dropped by 11,000 putting the total at 457,000. Although this may be a good sign, the number of people still receiving unemployment benefits rose, which many expects claim is slowing the pace of economic growth.

“The underlying pace of claims has not made any measurable improvement,” said Ellen Zentner, senior U.S. macro economist at Bank of Tokyo-Mitsubishi UFJ Ltd. in New York. “Businesses are investing in equipment but other than that there’s little impetus” for them to hire, she said.

Economists forecast claims would fall to 460,000, from a previously reported 464,000 for the prior week, according to the median of 42 projections in a Bloomberg survey. Estimates ranged from 445,000 to 500,000.

Stocks rose as companies from Exxon Mobil Corp. to Goodyear Tire & Rubber Co. posted better-than-estimated earnings. The Standard & Poor’s 500 Index rose 0.2 percent to 1,108.67 at 10:28 a.m. in New York. The yield on the 10-year Treasury note rose to 3 percent from 2.99 percent late yesterday.

Four-Week Average

The four-week moving average of claims, a less-volatile measure, dropped to 452,500 last week, the lowest since May 8, from 457,000, today’s report showed.

The number of people continuing to collect unemployment benefits rose to 4.565 million in the week ended July 17, from 4.484 million the prior week.

Personal Income Drops Across the Country

From the Wall Street Journal:

Personal income in 42 states fell in 2009, the Commerce Department said Thursday.

Nevada's 4.8% plunge was the steepest, as construction and tourism industries took a beating. Also hit hard: Wyoming, where incomes fell 3.9%.

Incomes stayed flat in two states and rose in six and the District of Columbia. West Virginia had the best showing with a 2.1% increase. In Maine, Kentucky and Hawaii, increased government benefits, such as unemployment insurance and Social Security, offset drops in earnings and property values.

Nationally, personal income from wages, dividends, rent, retirement plans and government benefits declined 1.7% last year, unadjusted for inflation. One bright spot: As the economy recovered, personal income was up in all 50 states in the fourth quarter compared with the third. Connecticut, again, had the highest per capita income of the 50 states at $54,397 in 2009. Mississippi ranked lowest at $30,103.

Homebuilding Drops as End of Tax Credit Loomed

From Bloomberg.com:

Residential construction in the U.S. unexpectedly dropped in October amid concern a homebuyer tax credit would expire, illustrating the market’s dependence on government help to sustain a recovery as job losses mount.

Builders broke ground on 529,000 houses at an annual pace, down 11 percent from the prior month and the fewest since April’s record low, Commerce Department figures showed today in Washington. Data from the Labor Department signaled inflation will be of little concern for the Federal Reserve.

Homebuilding seized up as builders waited for President Barack Obama to extend a first-time buyer incentive, which has since been passed and expanded. The highest unemployment rate in 26 years and consumer prices that remain below Fed long-term goals indicate policy makers will need to nurture the economy by keeping interest rates near zero.

“The recovery isn’t well established enough yet to take away that support,” said Michael Feroli, an economist at JPMorgan Chase & Co. in New York, who previously worked at the Fed. “An early withdrawal of fiscal and monetary stimulus would probably be quite disruptive.”

Helio Castroneves Cleared Of Remaining Tax Charge, Wins Indy 500

From All Headlines News.com:

Auto racing driver and former "Dancing with the Stars" champ Helio Castroneves' tax-related charges have been dropped on Friday.

The Indianapolis 500 winner was charged with conspiracy and six counts of tax evasion for allegedly failing to report to the IRS about his millions of income between 199 and 2004. His manager sister Katiucia and lawyer Alan Miller are also charged with assisting him in 2008, they were acquitted of the charges in April.

The trial for the case ended on April 10 this year, and Castroneves was acquitted of all six counts of tax evasion, but hung on one count of conspiracy.

However, on Friday, the remaining charge has been dropped.

He told eonline.com, "My life is back. The only thing I can think about is to go and be in the race car again."

That was Friday.

On Sunday, the over-achieving Brazilian racing driver won his third Indianapolis 500 checkered flag.

Castroneves won the title in 2001 and 2002. He also won the fifth season of the reality competition show "Dancing with the Stars" with partner Julianne Hough.