US Jobless Claims Surprise, Little Else Of Note

There isn't a huge amount to say following the most recent tranche of US data. There were signs that the labor market is firming faster than expected whilst other releases were on balance only marginally stronger than expected.

• Initial jobless claims were much lower than expected at just 199k (cons. 260k) after 270k the prior week, the lowest since Nov 1969.
• Core capital goods orders were marginally stronger than expected in the preliminary October report, up +0.6% M/M (cons. +0.5%) after an upward revised +1.3% M/M in Sep.
• Against this backdrop, inventories data were mixed with another strong rise in wholesale stocks (+2.2% M/M vs +1.0% expected) but softer retail stocks (+0.1% vs +0.5% expected).
• GDP growth in Q3 was near enough unrevised from its initial estimate, up +2.1% annualized as growth slowed from the >6% run rate in the first half of the year (a touch weaker than the +2.2% expected).
• Prices meanwhile showed further signs of upward pressure back in Q3, with the GDP price index up from 5.7% to 5.9%.
• Initial market reaction saw ~2bp sell-off in shorter-dated Tsys with attention now on PCE and incomes in October at 1000ET/1500GMT.