Highlights
Initial jobless claims didn't break through 500,000 but the report is still favorable. Initial claims were unchanged in the Nov. 14 week at 505,000 (prior week revised 3,000 higher). The four-week average fell 6,500 to 514,000, down for a convincing 11th straight week. Continuing claims, down 39,000 to 5.611 million in the Nov. 7 week, extended what is an even longer run. The expiration of benefits, however, cloud the significance of this reading. Benefits were extended to more than 17,000 to 540,000, with 3.6 million receiving emergency compensation, up 100,000 (both Oct. 31 week). The unemployment rate for insured employees is unchanged at 4.3 percent. This rate has been coming down, in contrast to the overall unemployment which of course is now in double digits at 10.2 percent. Commodities and stocks moved higher in reaction to the report, one which will boost confidence that the layoff cycle, that is payroll contraction, is in fact winding down.

Market Consensus Before Announcement
Initial jobless claims fell 12,000 in the November 7 week to a level of 502,000. The four-week average showed the progress that's underway, down 4,500 to 519,750 for the lowest level since last November. Continuing claims extended their long downward trend, falling a very large 139,000 to 5.631 million. Though some of this improvement may reflect new hiring, much of it unfortunately reflects the expiration of benefits. The number receiving extended benefits fell 28,243 to a level of 523,061, while those receiving emergency compensation rose more than 20,000 to 3.52 million.