Dow Leaps Over 200 Points; Jobless Claims Plummet

Aaron Task analyzes the morning business headlines.
3:00 | 07/26/12

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Transcript for Dow Leaps Over 200 Points; Jobless Claims Plummet
Your latest in business and finance from. ABC news. And you're watching live coverage of the opening bell on ABC news now we've got a special bell ring thing today coming from Monday. And the Procter & Gamble house. The place where families of olympians can stay during the game which officially begins tomorrow. They asked the opening up this Thursday July. Hello everyone I'm -- -- in New York breaking news the number of weekly jobless claims has plunged from last week. When there was an unexpected spike joining me now to discuss the top business headlines at this hour is Aaron task the host of the daily ticker on our partner Yahoo! finance good morning Aaron. Good morning -- So let's start with these weekly jobless claims basically down 10%. -- all of 35000 to 353000. What you make of this especially in light of last week's rise. Yet these are these are really well numbers they jump around a lot and Annette you said topped last week there is a big -- that caught him by surprise. This week we had a bigger than expected false I think some of it is some smoothing out. And the truth is somewhere in the middle -- like to look at the a lot of economists like look at the four week moving average of claims which is that 367000. Now. Which is down from the prior week so that that's. I think more what the number actually is around 360 not 380 not 315 so the you know smooth out the noise -- right when you look at these numbers -- week to -- -- It's still -- a little bit from that you know the dreaded 400000 mark -- -- still getting a little bit. A little more space. Yeah that's the most important thing is that we are you know again for a moving average at 367 we're aware -- solidly below 400000 which -- Is kind of the benchmark between our job growth in new job growth so overall. Moving in the right direction just not as fast as we would like. And Aaron the Dow is up more than a hundred right now largely I would imagine response to these numbers. Well it's a response in these numbers is also a response to some the comments -- got out of Europe this morning from the president of the ECB. Basically. He's saying he's gonna take a page from Ben Bernanke's playbook and start to be much more aggressive in trying to tackle European debt crisis. Whether that means he's gonna just be a print more euros or do a round of quantitative easing or QB. And why European -- And this is a big deal because up until this point the ECB has taken very much a hands off approach certainly compared with the Fed is done here and so. If he follows through on these comments -- could really change things in Europe. -- Aaron it's interesting because he's not being specific about what he's going to do -- just say he's going to take aggressive measures it seems that all investors want to -- Right because again it's it is you know these are bureaucrats -- -- speak in very specific terms and just the language he used this morning was different. Than what he's used in the past. And it and it's changed the conversation to you not whether. The CBO take more aggressive aggressive action but when will they do it and what will indeed and again it's that -- has some of this is splitting hairs but it's a really big deal -- the ECB is now gonna say okay. We're -- -- be like the -- and where to go out and we're gonna slash street so we're gonna. Don't print more euros and we're gonna go out into quantitative easing because yesterday. There was still an open question a wedding and -- do it right why haven't made any yet and now looks like they might be about to do it. The market is breathing a sigh of relief about that IRA let's about of -- president on FaceBook reporting for the first time later today but in the meantime Zynga which is. Largely tied to the social network took a nosedive in premarket trading down almost 40%. What is going on there. Yet it's pretty ugly -- seeing this morning they they reported results that were disappointing and they save some changes. FaceBook that made it harder for people to find using is games on FaceBook. I also think. There there's both -- tremendous amount of competition out there for all kinds of social mobile applications. And people might just be getting tired just might be some -- fatigue out there but it's really really -- morning. Prison to shareholders and it is getting people. -- a skeptical concerned about what FaceBook is group's report after the close tonight for sure. It's so interesting though because people are you know. Imagining that FaceBook might take a hit today but still look at the market in general -- 0200 points right now so -- Again you know like I can't stress enough what. -- president ECB said really matters at least for the market right at least for this moment it wasn't it we as it is a big deal. Right again though it right now just words no action has been taken other steps -- Plenty of room for this to come back the other way well. You know I again I think it's it's it's a change in his sentiment is changing his when he's broadcasting to the markets about what he's willing to do you write -- he does it is now the question in your right he's -- But that words do matter when it comes from somebody like the president ECB and it it's like he did 180 exactly. You -- yesterday -- -- catalog of music that's -- I'll do -- in the market really likes it right again we'll see how how long it lasts -- -- actually comes up with but it is a big deal. The general enthusiasm enthusiasm however not exciting to FaceBook right now down about 5% so we'll see we'll see how that affects at that. -- some other companies including 3M ExxonMobil and Colgate-Palmolive. All of them. Are going to be reporting today what do you expect here. Well some of these numbers are actually already out three ending the narrowly beat the -- -- -- Exxon was kind of a disappointment. There's been well there's a ton of earnings out today tomorrow this I would say is probably that the need to heart of the -- season. And what you're seeing is a lot of these big industrial companies. United Technologies as well. -- Dow Chemical as well miss. You know that of eastern United States they're talking about there's a slowdown in the global economy that's hurting their results also the stronger dollar. It's hurting their results because many do business overseas. The stronger dollar makes their goods more expensive vs competitors in those markets so they're facing some headwinds at least in this past quarter. Again I think if he didn't have these comments from the president of the ECB. These stocks could be getting hit a lot worse today and some of them are actually up even though they had disappointed because again it's. It's a potential and as a potential sea change in how people are gonna look at what's going on in Europe. It's amazing the enthusiasm we're seeing right -- -- the stock market out up over 230 points. Again this could change but it's a very exciting I guess start -- the morning Aaron anything else -- watching today. Well and again it's just how all these earnings play out his identity thieves just -- a durable goods number out this morning in US that was better than expected. Good economic news that jobless numbers reputed. These comments from the president the ECB also positive so that's you know put -- together and you see why the market is in rally mode. At least for the moment as -- -- upon. Let's see how long it lasts right but I do you think this this could have some lives. IRA Aaron task thank you so much it looks like it's going to be a good day on Wall Street today thanks for joining us.

This transcript has been automatically generated and may not be 100% accurate.

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