First Time Claims For Unemployment Benefits Plunge; Continuing Claims At 7-Year Low -- August 21, 2014

Reuters is reporting:

The number of Americans filing new claims for unemployment benefits fell more than expected last week, pointing to a sustained improvement in labor market conditions.

Initial claims for state unemployment benefits declined 14,000 to a seasonally adjusted 298,000 for the week ended Aug. 16, the Labor Department said on Thursday.

Claims for the prior week were revised to show 1,000 more applications received than previously reported.

Economists polled by Reuters had forecast claims slipping to 300,000 last week. A Labor Department analyst said there were no special factors influencing the state level data.

The four-week average of claims, considered a better measure of labor market trends as it irons out week-to-week volatility, rose 4,750 to 300,750. But at that level, it remains consistent with solid job growth and claims are back at their pre-recession levels.

Dow futures up a bit.

Super-spike in oil? The video "teaser" is more exciting than the actual video: why cheap oil could result in super spike in price of oil. The "talking head" is talking about "long, long term" and is very, very vague, saying he has no idea how far out. But the argument is no different that before: as the price of oil falls, some producers will cut back; relative shortage of production would lead to "super spike." Pretty lame video.

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Reuters is reporting that the US manufacturing sector surged in August:

The U.S. manufacturing sector expanded in August, with the rate of growth exceeding expectations and moving at the fastest pace in more than four years, an industry report showed on Thursday.

Financial data firm Markit said its preliminary or "flash" U.S. Manufacturing Purchasing Managers Index rose to 58 in August, which was its highest since April 2010, from 55.8 in July. Economists polled by Reuters expected a reading of 55.7.