Highlights
Last month's payroll data proved more solid than expected and now this month's weekly jobless claims are improving. Initial jobless claims in the Jan. 13 week fell 8,000 to an 11-month low of 290,000 with the four-week average down 6,500 to a 3-month low of 308,000. The Jan. 13 week is the survey week for the monthly employment report and a comparison shows a sharp 26,000 improvement from mid-December.

But statistical volatility during the holiday season does limit the impact of the results. A Labor Department analyst speaking to Market News International said the latest week's data were not significantly skewed by seasonal factors though the analyst warned that volatility is likely to remain a risk through month end. Another offset is a jump in continuing claims, up a sharp 120,000 to a 12-month high of 2.530 million.

This morning's 8:30 data all proved strong with gains in the CPI and housing starts. Continued signs of strength in the jobs market would be certain to push back expectations for a Federal Reserve easing. Treasuries were lower and the dollar higher in early trade this morning.