So, the new unemployment claims numbers are out, and they are still bad, though a bit better, 623,000, down 13,000 from the last week, and the 4-week moving average fell 3K to 626,750.
That being said, the continuing claims were 6,788,000, up 110K, to yet another record, so layoffs may be slowing, but so is hiring.
My take: this is more businesses are running out of people to lay off than it is the economy improving.
On the other side of the pacific, Japanese retail sales rose, but the consensus is that this is a temporary blip, not a trend.
Reinforcing my "dead cat bounce" view is the fact that durable goods orders remain near a 13 year low. (There is also some very bad financial journalism around this story, which I will get to separately)
Meanwhile, in real estate new home sales rose even as prices continued their fall, and if you look at the sales there is a huge portion which are distressed properties, short sales or foreclosures.
It's why we are seeing more stories about how there are No "move-up" buyers, selling their old house and upgrading.
There is very little equity for such a move currently, and with mortgage rates continuing their upward path, and delinquencies and foreclosures rising sharply, they broke another record in first quarter, I don't see any signs of a real rebound in the sector.
Meanwhile, I wonder how much the relaxation of the credit crunch involves the rest of our economy. The metrics involving inter-bank lending show signs of a thaw, but US commercial paper fell to its lowest level in 8 years.
This is largely non-bank lending, and it's absolutely comatose.
Menqhile in currency and energy, the dollar dropped, and the Yen dropped more/a>, on the (not really that) good durable goods numbers and unemployment figures, while oil was up on OPEC's announcement of no production boosts.
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