Rick Santelli on Economic Data: Jobless Claims, Productivity, and Trade Deficit

Key Economic Data Released

• 📈 Non-farm productivity for the second quarter showed a final read of 3.3%, exceeding expectations and marking the best performance since Q4 2023.
• 📉 Unit labor costs moderated to 1%, down from 1.2% and representing the smallest increase since Q3 2024.

Labor Market Insights

• ⚠️ Initial jobless claims rose to 237,000, an increase of 8,000 from the previous week, bringing them to levels not seen since mid-June.
• 📊 Continuing claims saw a slight decrease to 1,940,000, though they remain in the 1.9 million range.
• ⏳ The average work week, from a government standpoint, has expanded slightly since the beginning of the year, indicating no significant deterioration.

Trade Deficit and Market Reaction

• ⚖️ The trade deficit came in at approximately minus $78 billion, largely as expected, a significant increase from the previous month's revised figure of minus $59 billion.
• 📊 In reaction to the data, the 10-year Treasury yield saw a slight decrease, moving from around 4.18% to 4.19%, down three basis points.