Jobless Claims And Philly Fed = Marginally Positive

A mixed set of US data out at 0830ET that doesn't really advance the theory that Delta COVID concerns are hitting confidence:

• Weekly jobless claims hit another pandemic low (and only small 2k upward revision to previous week), though the shine is taken off a little by higher than expected continuing claims + higher revisions. As our data team writes, the drop in initial claims suggests "the labor market is still improving gradually despite a surge in the Delta variant".
• Conversely, Philly Fed disappoints in August at 19.4 vs 23.1 expected and 21.9 prior. This follows a big drop in the Empire Mfg number seen earlier in the week, which was seen as a potential negative reaction to rising COVID uncertainty.
• From the report: "The survey's current indicators for general activity and shipments declined from July's readings but remained elevated, while the new orders indicator rose. Additionally, employment increases were more widespread this month, and both price indexes remained elevated. Most future indexes moderated this month but continue to indicate that the firms expect growth over the next six months."
• Taken together, these readings are probably positive for the economic picture as a whole (and will do nothing to knock the Fed's taper path off course), with the Empire figure weaker largely due to the usual bottleneck/inflation concerns rather than Delta worries, and the labor market continuing to recover.

Source: Philadelphia Fed