Jobless Numbers Rise Again

Matt Nesto analyzes the morning business headlines.
9:18 | 01/26/12

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Transcript for Jobless Numbers Rise Again
Dow futures were up this morning after stocks worldwide. Rose on news from the Federal Reserve Bank during an -- -- discuss all the business headlines. Is Matt -- -- and break out on Yahoo! finance -- great to see you YouTube so we've got a lot to get to on this Thursday let's start with weekly jobless claims released in just the past hour last week's report. Had the lowest number -- nearly four years and we were excited about that today we have 377000. New claims that's below. -- that critical 400000 mark but an increase of 21000 claims from last week's. Take -- speech on the headline if you could Matt. Yeah you know as the world turns Stephanie it's you know if you look at the four week moving average it is inched down just a little bit but it's just about where we worth the -- today which is. 377000. Magically right in between the 40350. Mark so the big picture if you look at the continuing claims the people that have been. On the unemployment line for a period of time that stayed steady at about theory about 3.5 four million. So yes the downtrend. Seems to be -- -- -- intact and -- -- worsening. But again. You know not a giant. Leap forward to the next level now which is going to be something south of a 350000. Press. And that's a good way to characterize it OK we've also got numbers out this morning on durable goods and and they seem to be good. Yeah I I would argue that this number probably is more telling because you you have it the durable goods are armed separated into orders and shipments of both actually if you back out transportation and auto orders which are very volatile. We're at their best level since March up about two point 1%. The total headline number for all in on durable goods. Was 3% which came in better than estimates -- down from the month before but again we're seeing some strength and -- companies ordering. Materials and equipment and things that are expected to last more than three years so I think -- durable goods number is something a little more attractive a little more. Appealing then. Perhaps a forecast. -- seems to be a lot about being news for the market doesn't mention a few minutes ago markets around the world. Have been rising on news from the -- as well it now plans to keep interest rates low. Through the end of 2014 that's longer than previously expected when -- news yesterday and that I frankly didn't know how to take it because doesn't it also mean that they're not that encouraged about the growth of economies -- Locally -- -- -- -- our economic growth coming. Of any magnitude and any strength. Or inflation. Or or just any signs of real strength in the economy they wouldn't promise to keep interest rates -- based -- 0% for the next three years. It just goes to show how the market. -- wants to have the Fed are on their team. For the game so this is basically being seen in the bizarre -- world that is Wall Street and I would view on this an idol I took this as short term you know what the market do its thing we're in the throes of a nice rally here but I think this is -- a long term caution side you know. Every single fed -- -- -- came out and for the first time ever with their own individual forecasts you know the old saying. TMI well the Fed had to be sued to get on all the information in terms of who they lent money to -- the -- the financial crisis that was bearing and that's what every single members forecasts and giving us. These promises of low rates three years out I just think it's too much information. Ultimately the title -- people will see for what it is I think we are seeing a bigger moves in the currency and bond markets as a result of just stock investors is gobbling it up and hoping that they'll continue to Ben Bernanke in your back pocket -- do anything to keep the country's going into recession began. Okay we've also got more than three dozen companies reporting earnings today among them AT&T caterpillar and Starbucks. How AT&T. Do for the quarter first of all. Well they missed by a penny and that's a really matters it's not so much -- you know the year ago move which was you know pretty good -- -- declined from on an EPS earnings per share basis. Other revenues were in line of about three point 6%. But AT&T. Without mrs. going to be struggling a little but the thing that keeps AT&T in the -- -- a lot of investors now. Like the fact that he cares about a five and a half percent dividend so. Anytime there's a dip in that stock it tends to trade up. Also you mentioned in the Dahlia three down names reporting today EDT caterpillar. Which beat on its estimates and also gave strong guidance so that one is looking good here today and -- 3M also beating a guiding higher. The flip side though as it has been the case throughout much of this hurt earnings season which were not quite halfway through now. We're seeing some caution and understandably so unlike the Fed companies don't want look out. 36 months they merely want to look out twelve months and they don't necessarily have the confidence to give these raging forecasts that are. -- you know far above what's already baked in from analysts on Wall Street Lockheed Martin is one with. You know good earnings on -- trailing basis but there. Guidance going forward cautious Bristol-Myers giant pharmaceutical company same thing -- although they messed. They're -- section they took down a little bit. So I continue to see. The sale side of -- the top line if you well if anything is going to be where are these companies are missing and the guidance continues to be cautious. Well this is I was an interest in stirring Netflix and they steam ahead to have gotten back on course the company says it's added over 600000 new customers. Almost as many as it lost during a series of unpopular moves which we've reported about a lot on the show and using all is forgiven -- with the customers. Forgiven but not forgotten you know we're still talking about -- we always -- armed you know takes awhile to get over something like that. Certainly it it is a viable business -- profitable weekend. Take a very -- short term look at this thing over a couple of quarters and you know look at the volatility of the stock. Look at the volatility of their business but you know they're they're doing the right thing mean. Here we are a digital platform digital video is kind of a popular a growing business so. There's still hugely popular people are coming to them in droves to get that you know entertainment and media that they want to say so. Yes I think you know -- the obviously the market is bidding up this document -- so there's a degree of forgiven but definitely not forgotten. That -- been battered. OK this is a really interesting story Matt JC Penney. Plans to stop holding say all's well that are -- this is a new business plan and other companies are gonna jump bonding or is this gonna backfire because people love bargains. You have mark -- 30% higher -- -- a welcoming the new thing. If not maybe it's the game the gimmick as we all know the a lot of times sales aren't necessarily Jenny wind you know they're sort of these marked down. Mark down some prices that never really war. The main -- JC -- need to do is get their merchandise. Right. And they -- have the right amount of product so you can sell. Less. Product at full price -- that's much better than you know cleared it out and -- just doing a lot of volume at a discounted. Price so the main thing is to get is merchandising as they say. Get the right product on the shelves in the right amount and that will eliminate the need to have all of those sales maybe that's sort of what the. -- you're saying maybe they're barking up the wrong tree I guess we'll see. At K it's a busy day because also due out within the half hour new home sales what what what are we going to be looking for there. A few hundred die only 300000 don't know look for you know bonfire of just do home buying out there and still you know it it it's a very low number. Not a not a giant moved from the from the month before -- I think 3151000. Wrote down was -- and 101000 the average estimate not really a meaningful move. Over the last few months. Tanks and more status -- quote there. Overseas we've got the world economic for -- going on and dot those headlines emerging from the Swiss -- today. -- -- -- -- -- -- -- -- -- Certainly that ask -- we're talking fashion. Well Lee yeah it's important you know I mean that this you know it's our row it's -- relevant. The what struck me Angela Merkel -- the German chancellor was speaking and she was talking about you know how well. Unhealthy and as we we talk on Wall Street I just mentioned Netflix of the focus on the short term of the quarterly earnings too -- of a similar point saying that. You know investors the world needs to be patient they need to give Europe time. To work out their problems. Which you know that's true but it's also kind of frustrating given that we're going on two year three of their problems and they have not. By any stretch of the measure. Bad very fast or aggressive in terms of addressing in or containing a problem I mean. -- -- problems are cropping up again I mean you pick -- we thought we put Portugal to bad forget about Greece we put them to bed twice and they just keep getting up with a fever so hope. You know the to the truth of the matter is is you know for her to say. We need patience give us time OK but you know we need action yeah I'll act -- I guess is the main thing I've had a McDonald's and the other one is a big heavy debate whether or not capitalism is dad and they. -- polls suggested that capitalism is definitely under pressure and problems. Well wolf what's the alternative -- Matt -- death row my Yahoo! finance the coast of break -- it's always great to have you have a great day YouTube my pleasure.

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

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