U.S. Jobless Claims Near 4-Year Low

Matt Nesto explains how jobless claims, other factors affect world markets.
10:23 | 02/09/12

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Transcript for U.S. Jobless Claims Near 4-Year Low
This Thursday. February ninth loving and accepting -- New York futures did turn higher in the past few hours on news including the fact. And jobless claims are near a four year -- out. Joining me now to discuss all the business headlines including a bailout just announced for Greece is Matt -- and he's. Co host a break out on our partner Yahoo! finance and -- to see you. -- so little so does start off with the news we got at 830 this past week jobless claims fell another 15359000. And as we said that's -- four year low what making of this. -- -- -- we we had that stubborn 355000. Print in January and that's the only thing. Keeping us from officially printing the headline that -- -- a four year low but you know what. Wall Street is looking at the trend is for all intends and purposes the claims. Are -- -- levels not seen since 2008 so we take a look -- that as we've talked about that number has been trending down yet there will be some bumps up in bombs down. But definitely heading lower into the mid to 300000. Who range three and 50000 -- the only thing that stands out to me is the continuing claims number which comes out of the same time. And that actually didn't go down at all that's kind of stubbornly stuck at about three and a half million and inched up a little bit week on week. And then the big pictures is how -- the market interpret. This news will get a good read on that tomorrow we get the latest reading on confidence coming out of Michigan and that should continue to show some improvement. Okay -- while we're talking about jobs Pepsi announced this morning that it's going to cut. Nearly 9000 jobs the company actually beat earnings so what's the strategy behind -- Or the reasoning so -- -- -- context first so that's a lot of jobs 8700 jobs it's about 3%. Of a workforce is about 290000. People so more normally a company that size. Could do that without actually firing anybody just through normal attrition so to speak so the reasoning. Behind it is rising commodity costs and just it's a tough market out there they have to spend more. On advertising. And marketing. Their forecast even though there -- trailing results for the fourth quarter which came out. Find -- better than expected or forecast for the full year was a little bit soft so by implementing these -- cost cuts. Job cuts and other guys spending. -- cuts the companies expect -- to save three billion dollars it's a doubling of cuts -- minority men and places so. That's the reasoning behind -- -- he's been struggling as a stock in the marketplace but that's not so much perhaps his fault. As much as investors of sort of fallen out of love with those consumer names and in the short term have been chasing more -- sexy. Growth stocks. -- turning overseas now we -- have some breaking news out of grease a deal. They gives the country more bailout money what are the -- -- -- I'd -- it's amazing it's a bloody -- let's make a deal Monty Hall has been over there. This is at least the third time. That Greece is look at devil in the I come away with -- last minute eleventh hour deal. To not. Don't fall. Even though in the eyes of pretty much the world -- all investors they have defaulted multiple times. This will give them if indeed -- is it is confirmed. A lifeline for a little bit longer ruled push more mandatory. Cuts into the air economy. They have already signed on will bill which is -- relinquish a lot of -- global sovereign control. Two the -- European Union and allow basically. Outsiders to have a thumbs up or thumbs down on. Domestic spending measures it's going to take an economy that's already hurting an already has 20%. Unemployment and probably make it worse in the short term so many say it's a self defeated measure but at least for the bond holders in the banks. There is a brief window of clarity. Is it closure I don't think so. Yeah well with -- it's hard to find closure a little while we're talking about your we had also a big. A pair of announcements this morning the European Central Bank. Is leaving its benchmark interest rate at 1% the Bank of England is injecting another fifty billion pounds into its economy what do these decisions indicate. Well on the indicates the ECB it appears that at least. They are saying our word -- -- we feel we have this problem under control the market leases believing. That we're making progress here so. They're a recent spate of rate cuts of easing to a money making money more available and being of more available themselves. To solve this crisis there at least. Standing by so maybe that's a little sign of confidence on. Their -- As -- as far as the Bank of England injecting money again it's another major Central Bank. Around the world that is doing some thing to prop up their economy that's one of the reasons why you're seeing investors believing. Even in the face of evidence that might contradict that that we have a better times ahead of us wins the support and promised support. Of most of the major central banks in the world. Some bright spots there is okay this another story making headlines today on foreclosures because it appeared all fifty states are -- To a multi billion dollar settlement with five big banks who wins here. Does anyone lose. Well I think it's taken a long time to get to this decision has even been officially announced yet some of the big stakes new York and Florida and California have been I'm in -- -- -- we haven't heard definitively whether -- India but the presumption is that there could be an announcement as early as today. For 25 billion dollar settlement -- these five big lenders for foreclosure abuses we've all heard about. Robo signing in sloppy documentation who holds the note all kinds of different things so these five banks in theory would. -- over 25 billion dollars how that money actually. Gets disseminated into the marketplace. Is a totally different question we have and analysts Dick -- -- who follows the banking industry who called this the deal from hell. The ramifications are you know sweeping if you were in far reaching. If you will so it's going to. Possibly. May -- help out a very small number of homeowners as far as a big. Boosts to the real estate market for the individual don't expect it. Don't expected to clear up a backlog of foreclosures at any time really soon and as far as bank stocks which are -- fire this year Bank of America is up almost 50% adjusted 2012 alone for example. They've already for the most part set aside. This money so from their point of view there's at least a degree of clarity for one round of lawsuits are still facing. Other lawsuits in different areas but this is just been a big one that's been hanging over them so they'll be having to have some closure on foreclosure. Like you said we shouldn't get her hopes up too high as far as recovery in the housing market -- results of this. Okay we have a slew of companies reporting earnings today we already talked about Pepsi also reporting Dunkin' Donuts Philip Morris and Rolls Royce. Any headlines just. Yeah well it's interstate you know I mean I was looking at Dunkin' -- it's a new -- traded company the company that it became public last year and they came out with a better than expected earnings and as some good revenue growth as well double digit revenue growth. There ice cream business. Was actually very strong which -- surprise me is. As well also that one and I -- Yeah Baskin Robbins yeah I'm that Enron had answer and then there right. So if you take a look at Duncan -- -- continue to do well so I was coming near and dear to me I'll do my part to sort of in -- -- in a -- Not like we all -- -- OK we group on report after the bell yesterday -- and a lot of people are looking at that and of course. Because it's the first time. Reporting as a public company and they have some surprising losses Monday. -- they did it and it was yet I just did piece on this and that I kind of went all OJ you know -- if the glove don't fit you must acquit and I said. That the punishment of this stock which was down 15% after hours it is down. You know sharply this morning that the punishment did not fit the crime yes they did report. A small 42 million dollar loss based on some unexpected taxes in Switzerland however. There -- stock lost two and a half billion dollar -- was about a sixty to one. Ratio in terms of the surprise loss I think investors might have overlooked the fact that there's still. Doubled their sales -- in 47 countries right now -- user base is up almost 200% so the company is growing. Quickly and showing some signs of being a publicly traded. Company that's trying to manage rapid growth on a global basis that's difficult. That's not the end of that story it's a fascinating. Example I think of that space in general. Let's Caesars they went public again yesterday take its current trading at nine dollars a share and it closed up 71%. What are your thoughts on this stock. A tea but the pundit Tucker C on Caesars was mrs. -- worst deal ever. I wouldn't touch this with a ten foot pole this is that debt -- income this is a dog this is. You know big huge hedge funds that are trying to dump their -- get out of -- I wouldn't it. And then what what are we had in the marketplace and we had a huge rush into the stock a lot of people defined yet. One of the reasons why the stock was higher is that it was them only -- tiny tiny. Amount of stock was actually sold -- -- supply out there that has an effect. But still. It had been that you know what's in an industry that has wide support and interest -- -- you know leverage that the consumer does a great brand. And the core shareholders. Aren't selling their stocks -- maybe some people said indeed that John Paulson hedge fund manager who was actually selling the stock. Did just need to rates and cashing get out of it and that they took the price down -- quarterly given the fact that the company has about two. 22 billion dollars worth of debt on their books which is awful lot of debt to service compared to some of their peers. All right let's take Wal-Mart look at the -- -- for we let you down that training priests flat right now not a lot of movement up about point 1% that well. Seems like rendering of bull market here. Would no doubt -- festive best to start to the near 25 years absolutely Matt -- from Yahoo! finance thanks so much -- have a great day.

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

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