NEW YORK (Reuters) - New claims for unemployment benefits unexpectedly climbed to a nine-month high last week, government data showed on Thursday, yet another setback to the frail economic recovery.
KEY POINTS: * Initial claims for state unemployment benefits increased 12,000 to a seasonally adjusted 500,000 in the week ended August 14, the highest since mid-November, the Labor Department said. * Analysts polled by Reuters had forecast claims slipping to 476,000 from the previously reported 484,000 the prior week, which was revised up to 488,000 in Thursday's report. * The four-week average of new jobless claims, considered a better measure of underlying labor market trends as it irons out week-to-week volatility, rose 8,000 to 482,500, the highest since early December. * The number of people still receiving benefits after an initial week of aid fell 13,000 to 4.48 million in the week ended August 7 from an upwardly revised 4.49 million the prior week. * Analysts polled by Reuters had forecast so-called continuing claims rising to 4.50 million from a previously reported 4.45 million.
JOE SALUZZI, CO-MANAGER, TRADING, THEMIS TRADING, CHATHAM, NEW JERSEY:
"There's still no sign of growth there, still weighing down the economy. Until you get those jobs numbers turned around no matter how you spin this, no matter how you look at corporate earnings, it's not going to work. The economy is not recovering until you get those jobs moving in the other direction.
"If you don't want to call it a full double dip you're certainly in a flat line now. And you're not seeing any growth.
"That said, I wouldn't be surprised if they take the (stock) market higher today. I'd expect a plunge at the open but I wouldn't be surprised if we're green by 10:15 (a.m. EDT). The stock market is not a really good indicator if the economy any more. It doesn't tell you what's going on out there."
JAMES COX, MANAGING PARTNER. HARRIS FINANCIAL GROUP, COLONIAL HEIGHTS, VIRGINIA:
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