Jobless Claims Near 4-Year Low

Matt Nesto analyzes the morning business headlines.
10:11 | 01/19/12

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Transcript for Jobless Claims Near 4-Year Low
Futures were up this morning following yesterday's rise -- nearly a hundred points. Joining me now to discuss all the business headlines this morning as Matt -- -- does break out. -- -- finance good morning that great to see you thanks Stephanie appreciate me -- -- yeah we some positive news this morning let's start with the weekly jobless claims which are at their lowest level in nearly four years that seems like a pretty big deal these numbers. Coming out about an -- 362000. New claims last week. Not just aren't you with here I imagine I'll find something right. -- -- -- -- -- -- -- Say is that you know tis the season seasonal disruptions and volatility are the norm this time of year. A week ago we had that 399000. Figure which was a blip higher it was for the record revised north of 400000. To 402 -- yes clearly 352000. Is a resumption. All of the -- trans. It that we have been seeing over the past 68 months even longer so it is the lowest officially since April 2008. As you pointed out so it is definitely. A trend in the right direction but you do have to be careful with the volatility that comes in numbers this time of year. -- -- On the other hand 2011. Turned out to be the worst year on record for construction of single family homes numbers out from the Commerce Department at 8:30 this morning show under 607000. New homes started. What are your thoughts on the significance of that number Matt. Yeah we did see the big December I give that we had a strong November and again these numbers are going to be split into the single family as you point out in the multifamily and the latest month's data was really hit by an almost 30% decline in the multifamily. Sector of the apartment building -- five plus community. Which is interesting because that sector has actually help up where -- -- money coming in you're seeing a lot of stories about rents going higher setter in the Korb lowly beleaguered single family housing market has been hurting but the single family number was only was actually up 5%. But it was offset by that sharp decline in the multifamily so. You know. I think it's a good indicator you know you know one at a lot of supply. Into the single family housing market there's a lot of supply on the market there's a lot of phantom supply that could become into the market any time so any new supply is just more restraint more -- on prices -- -- not. The last of the big banks reporting -- -- they do -- Yet they do well -- you know they're always cluttered numbers we take a look at Bank of America they turned a profit. -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- Been reporting lately there investment banking revenue. Was way down. And we're seeing it than that company does dealing. With the tough market environment that quote that I saw that struck me the CEO saying is that they ended the year. Better than where they started it so Morgan Stanley is definitely getting a lift your launch out of all the -- alongside of the market in generals -- market that could Stephanie you know. We continue to chug higher here from you know sometime if you depending and we if you -- go all the way back to after Thanksgiving or sort of that. Week leading up to Christmas and into the new year. -- a strong rally we're seeing here and it looks like it's continuing today aren't we're getting earnings from Google Microsoft and Intel any particular points of interest there. -- and and an IBM as well let's -- lest we forget big blue it's going to be wild you know these are Bellwether technology companies each one sort of different in their own right we've seen a lot of strength. Returning towards -- semiconductors lately so Intel. Which has the enormous market share in semiconductors is always going to be interest in their companies it typically. Don't disappoint on the bottom line where you might get tripped up is the -- that they may not be willing yet to give -- strong confident. Guidance are forecast that Wall Street loves so much so probably be cautious in their guidance and frequently. We do see some degree of selling the news. As we say here even if they hit or be. The expect expected numbers. Okay let's talk about the other big story Kodak declaring -- bankruptcy. Can they survive with the reorganization. Or are they going to be out of the picture. Yeah well they say they can meet their creditors and and and stay solvent they got a almost a billion dollar new credit line from -- Should people going that does buy them time clearly they're looking to do. -- deal there are assets that are valuable they have businesses. That are starting to gain traction. This is not the old Kodak that we knew that was once in the Dow and once one of you know most stable and profitable. Companies and in America but that you know the truth of the matter is they now do. A lot of business in packaging and and in different businesses that are a long way from the little boxes of film that we -- -- You know by so yeah Kodak in of this -- been under a -- forever the fact that they actually filed bankruptcy becoming knew that was -- coming in now just a question of will somebody come in and buy the company for a certain amount warned that some assets. And or some of the businesses just kind of -- -- up. -- -- sign of the times kind of story is an and I got some breaking news here Matt that I want to tell you about. The Associated Press is reporting that candidate Rick Perry is dropping out of the GOP primary raise up. I was gonna talk talk about him anyway we're also by the way getting -- news that he's going to be endorsing Newt Gingrich. Four at the primaries. Really hairy heat. Really god. Sort of criticism. For labeling Romney. Of vulture capitalists duke. Feel that -- -- Hurt Perrier her Romney hurt -- I don't think -- -- heard him I think he -- himself I mean I think you know he went in -- front runner and left you know a single digit candidate who had to drop out after three contests. You know his campaign was. Disorganized he he he you know he had every opportunity. To get momentum and he did and took every opportunity to sort of undercut. Himself so we you know it was high expectations. And that -- delivery so you know the old saying is the you know under promise and over perform. We had the inverse -- vulture capital great campaign line. You know an appetite for is based. Yeah I guess but it it you know it's all been very timely right now to talk about. Private equity -- were just talking about Kodak everybody wants somebody to come in here in save this company you know. It's not up to Citigroup to just lend money in and give them credit line -- -- -- some time but ultimately they have to make money or they're not going to be other pay. They're pensioners in the not going to be able to you know hire people in and and and and keep people employed so. You know that's where these vulture capitalists come -- and things reach a certain level. They look at the debt how much you know who's -- what they look at what the other costs and obligations are what the growth is what's moving and they make eight calculated -- so. Yeah vulture sure they -- in fact that's what's needed in the real estate market right now so I'm kind of sensitive about this whole. Sort of negative connotation it's the way the system work it's a free market you know prices get. Low enough it doesn't matter of -- you know milk or. She's whatever injured or houses you know prices. Works this works and clearly -- didn't work for periods we've just -- -- dropped out of the race. We've got to South Carolina primary just days away now many are saying if Mitt Romney wins he's locked up the Republican nomination of course -- -- change percent warrants. Declared the winner in Iowa today the certifiable winner -- -- four votes or whatever but how -- what you think about the other candidates going after Romney. On Bain Capital. You gotta go after him so that sort of a target I mean it's populism. Politics is saying you know he's a rich guy and you know he's got all this money. It put -- -- on Twitter about this -- 15% tax rate and you know for criticizing someone's. For adhering to a tax code that they don't want they don't like that they want to change. You know what -- -- -- -- I said it's like you know blaming the big Mac on the cow it's what it is -- and I think also you know it again people there is a class envy card that gets played. You know he's clearly a wealthy person he needs that step up and take ownership of that and say look and I did this. You know you have to go piece by piece through different companies to say that he -- says when and -- Companies and fired people is sort of random but it's the way it works in you know SoundBite politics you life that we have. But you know the tax code issue the whole private equity issue. You know makes a good politics but the truth of the matter is I don't think we really want a tax code. That -- is investment or -- -- savings and that's you know why these. Billionaires not just Mitt Romney. Are able to you know. Pace it's a low effective tax rate because that's the tax code that's on the books right now one that everybody thinks stakes it needs to be changed. Yeah but he was just following it as you say. Matt temple we are out of time so we're gonna have to let -- -- but thanks so much Matt Nestor of Yahoo! finance have a great day Matt YouTube.

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

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