Announced this morning, Initial Jobless Claims were 709,000 for the week ending November 7th, lower than estimates and Continuing Claims were 6,786,000 for the week ending October 31st, also lower than expected. Meanwhile, the Consumer Price Index was flat in October and up 1.2% on an annual basis, slightly lower than expected. Prices for Apparel and Medical Care commodities were lower for the month, while Electricity prices increased. The core rate, which excludes food and energy prices, was also flat for October and up 1.6% on an annual basis. Overall, the labor market continues its improving trend due to COVID-19 but remains at very elevated levels, indicating it will take time to recover. As core prices remain well below the 2% average target by the Federal Reserve, it continues to justify accommodative policy for the foreseeable future. In all, bond yields are little changed and equity futures are mixed we head into the market open.
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