Unemployment Claims Drop

Yahoo's Jeff Macke analyzes the morning business headlines.
7:19 | 12/08/11

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Transcript for Unemployment Claims Drop
Dow futures seesawing this morning following yesterday's 46 point gain to Jordan not to discuss the business headlines at this hour a new contributor foresees a man of course you may recognize Jeff MacKey. Co host a break out on Yahoo! finance. Jeff thanks for being with us today take a more dance drink beer and listen we got a lot to hit him this morning including Europe of course -- -- I wanna start with jobless claims for the week. Came out about an hour ago they hit and nine month -- this might have been a bit of a surprise 381000. It's down 23000. What's your take on this. I think is. These numbers are widely looked at -- make for great headline. But it's a very noisy number you can't survey all 300 odd million Americans and come up with a specific number for jobless claims -- night. That said we're trending in the right direction are jobless numbers in the states are still a national disgrace slightly less so than they were a month ago it's good news on the margin. Are so we have put the caveat in there that a lot of that has to -- with a fat people just simply stop looking for work altogether though. Oh absolutely I'm not saying the economy -- any great shakes but it's all about direction and trading world it's not about -- on an absolute basis if it were. The dollar be about half where it is right now we want the trend to be better in terms of jobs in this country and it's getting there inch by inch heading in the right -- OK I -- -- had a horse he's -- -- -- Europe of course the F European Central Bank had a pretty aggressive -- today with interest rates. I tell us what you know about that. Well they got -- to 1% which on does some interest rate hikes that they done earlier. This is not unexpected there's a battle going on for the soul of European banking system. But the ECB and one count trying to assume Federal Reserve -- powers to print money and do whatever they want. And those were objecting to this stance obviously that would be sort of the Germans who don't want to bail out the profligate countries of Europe. I would advise -- -- to pay a little less attention to this the headlines are gonna -- saw the market. It's hard -- even the pros to trade let's back up and we can read about it on Sunday -- -- obviously they're very strong woman over the issue certainly had a lot of sway in that direction of these talks which are wanna talk about that the start of a summit in Brussels it could be. This meeting that actually leads to a solution for debt crisis and what's the possibility -- that -- with a real answer from this guy slim and none and slams out of town. That it kids let's not bad on the apocalypse and that's not bad on utopia what they're gonna do as a model -- rule. It's not that complicated if you just back away from the economics and consider these folks as people. They're people who wanna get elected you don't do back going extremist so -- gonna come up with some solution to duct -- this thing together. If the jalopy -- -- the street -- be good enough for now I think that's what we're gonna here is just whatever they can do to us -- the market that Europe's not falling into the abyss. That's what they'll do. Put this into context for -- because the S and he has threatened that it might be downgrading. The EU's rating of -- AAA rating. What's what kind of ramifications not gonna have because we really have seen kind of the significance of the S -- -- rating is really happening in countries. Yet we saw that there is much -- trying to use a German term -- they win the S&P did bats in the United States they downgraded the United States -- August. At one dollar open arms and it turns out it really didn't matter. The credit ratings agencies are fighting their own war for credibility right now and standard poors is taken the role of international schools you better do this or else. I don't think it has much of any impact in terms of the national economics of the situation I want to turn back at home now Jon Corzine a former New Jersey senator and governor he set to testify before congress today. He's prepared statement saying that among other things ultimately have overall responsibility for the firm I do not -- wherever. Generally involve myself in the mechanics of the clearing and settlement of trades also he goes -- I simply do not know where the money is or why the accounts. Have been reconciled to date. What do you make of this whole -- situation because a one point two billion dollars has gone missing and he says he can't account for it. -- yeah I believe the last part where he has no idea where the money went. And terms of him not being on the phone actually executing brokerage statements will no kidding that's as -- -- the CE OMR Corzine. He's got to -- -- this this is why folks are distrustful of Wall Street. Because they get away with this kind of garbage what IMF -- MF did rather -- levered up 421 meaning for every dollar they actually had. They put forty boxed in on bets on European debt it was a horrible -- they might as well -- magic beans. And the -- shareholders' money to do it investors might do it that's simply wrong it's a violation both ethically morally and in terms of the laws as I understand them -- -- out to launch on this is it gonna do anything now that he's making a significant he said other people may have -- him invoke the fifth is that hey you know I don't have to answer these kind of questions. -- it's a little late for him to claim the moral high ground all right -- one point two gone missing I would imagine it certainly would be a tough argument to make costs go. They're out with their earnings for the quarter how they do. I'm longer stocks as far as I'm concerned cartwheels in the street fantastic. Here's an -- -- the stock is down a little bit today -- Its margin pressure their revenues came in better than expected EPS came in in line with that means. Is that they paid more to sell the goods and that's what it's all about here margins -- is a question -- speaks to the question. Of whether or not these retailers made me money when they mark down all their goods on Thanksgiving sales. Costco a little cautious but keep in mind that stock is near all time highs. A little pullback -- not unexpected overall the numbers are pretty good aren't speaking -- shopping FedEx they did -- little early holiday shopping with Boeing what do you hear about that. I think it's a terrific sign for the US economy and also speaks a little bit to Europe Boeing's main competitor. Is he a Diaz how everyone -- pronounce it they're basically a subsidized operation on the Netherlands. Boeing is securing contracts at a huge clip here and that's critical for US manufacturing it's great for Boeing. And it's nice that -- is out -- spending money given that anyone else who flies plane seems to go bankrupt about every ten minutes. Exact while lot of people are shipping out those fruitcakes -- now this time of the year obviously. Shipping is very important it's repaid many out there -- did better believe it is sign everyone up -- Bernanke and that's a man no one. Really would like to be had at this hour but his popularity -- on the rise in -- Bloomberg -- effect putting his favorability. At 71%. Gets up from 60% just three months ago. What's going on -- -- -- Bernanke now. -- because the ECB is such a disaster is a short answer popularity is of course relative. There's a -- he's got -- on his side but also you know the economy is improving just a little bit. And the Fed like them or not they're the only guys in the room that are doing anything he's been calling for assistance from the fiscal side that is to say the lawmakers. Fernandez on the monetary side he's been saying -- the Fed. Cannot be a cure all and yet they're doing their best easygoing one DC who apparently actually works for a living. And tell the lawmakers get on board this thing dies -- lives with Bernanke in his human and alive albeit you know console initially art when you what do you keeping -- -- -- today Jeff. -- I'm watching how the market reacts as just a technical observation we're getting towards critical levels for the S&P that Santa Claus rally. Better start manifesting itself now we had a great week last week I'm just hoping for stability here. Barring a breakdown I don't want to be levered up to the Europe situation at all. I want to see the markets are trading on the US economy which frankly isn't as bad as ever want me to thank -- with -- distract from everything happening overseas. Yeah exactly outside good idea to keep your -- on -- Europe are right. Everyone here America Jeff MacKey to -- -- a break out on Yahoo! finance Jeff thanks so much for me as I appreciate it there is great beer an of course see you back here again next Thursday. -- -- --

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

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