Highlights
Initial jobless claims jumped significantly in the Nov. 24 week with no special factors to account for the disappointment. Claims rose 23,000 to 352,000, the highest level since February. The four-week average rose nearly 6,000 to 335,250 -- the second highest level of the year behind the first week of March. Continuing claims for the Nov. 17 week also show deterioration, up a steep 112,000 to 2.665 million -- the highest level of the year. The four-week average of 2.589 million is also the highest of the year.

These data are certain to ring alarm bells at the Federal Reserve which right now, as underscored yesterday by Vice Chairman Kohn, is fighting a battle against slowing growth more so perhaps than inflation. Today's data will scale back expectations for next Friday's monthly payroll data. Markets showed little initial reaction to the report which was posted along with mostly as-expected GDP revisions. But the results point to a new element and important element of economic risk -- a negative for stocks and the dollar and a positive for Treasuries.