Morning Market Roundup: Jobless Claims Jump, Coke’s Guilt

Here’s what’s important in the financial world this morning:

Weekly Jobless Claims: Applications for weekly unemployment benefits spiked last week, largely because companies let go of thousands of workers after the holiday season. Weekly applications rose by 24,000 to a seasonally adjusted 399,000, the Labor Department said Thursday. That’s the highest level in six weeks.

Furthermore, this may point to a disingenuous trend from the Department of Labor. Ed Morrissey of Hotair explains:

…there have been some rumblings from economic analysts that the Department of Labor’s seasonal adjustments are overly aggressive. Jay Cost wrote about this on Tuesday…

If Jay Cost’s calculations are accurate, then we only added just enough jobs in December to barely stay ahead of population growth, which means that the entirety of the drop would be due to a decline in the work force.

China’s Inflation: China continued its downward spiral in December, dropping to a 15-month low of 4.1 percent year over year, down from November’s 4.2 percent CPI, according to the National Bureau of Statistics. As compared to November, China’s consumer price index was 0.3 percent higher, putting China CPI’s 2011 inflation at 5.4 percent. This data has analysts hopeful that additional monetary easing will come from Beijing.

(Related: Paramount, Universal and Disney Dole Out the Big Bucks for Super Bowl Ads)

Sears: More bad news for Sears. CIT Group announced it will discontinue factoring accounts payable for the company, ending a source of ready cash flow for them. Sears reportedly sat on $4.2 billion in liquidity at month’s end in December, along with $900 million in cash.

ING: ING has killed its plans to take its insurance and investment management operations public in Europe and Asia. The company announced its plans in a press release and said it changed course from “the uncertain economic outlook and turbulent financial markets, especially in Europe.” ING did say it will continue preparing for its base case of an IPO for the U.S. insurance and investment management businesses.

Coca-Cola: Coke acknowledged it’s the orange juice maker that had unapproved fungicide not only in its orange juice but also in its competitor’s products, according to the Wall Street Journal. The company, which makes Simply Orange and Minute Maid, did not disclose which brands had the fungicide as both contain juice from Brazil.

In response to the news, U.S. regulators stopped shipments of imported orange juice from all countries. It will also either destroy or ban products if low levels of fungicide are found. The contamination fears have wreaked havoc in OJ futures, causing volatility.

The Associated Press contributed to this report.

(Wall St. Cheat Sheet)

Comments (32)

  • jbcaz
    Posted on January 12, 2012 at 5:56pm

    And Wonder Bread will probally shut down as they are in there Second BK in 4 Years –UNION THUGGERY They Need to be Downsized and More Rules for what the Unions can do- Progressive Politics and Union Controlled Companies are Ruinng the Nation — Californis is the Poster Child for Why No One should Vote for Another Progressive Politican — Who are they check out discover the networks discoverthenetworks.org they will tell you more than you want ot know about SOROS and his Democratic Party that is Bound on Destroying the USA You can actually find the Progressive Politicans online as well- 89% in California

    Report Post » jbcaz  
  • dlivelli
    Posted on January 12, 2012 at 2:40pm

    Does anybody really think that any president doesn‘t ’cook the books’ to make themselves look better? Just too bad this one is doing it with our lives and fortunes. The worst part is he doesn’t care, he has no risk so why should it bother him. I am still waiting for him to donate his salary for debt reduction. After all, he is one of the 1% they all hate so much isn’t he?

    Report Post »  
  • smitty1007
    Posted on January 12, 2012 at 2:28pm

    Why should it surprise anyone that retailers, their suppliers, UPS, Fedex, trucking companies, the Post Office and charities hire short-term employees to handle the Christmas surge and then let them go come January. Why would anyone brag out an uptick in employee in December. Our economy is toast!
    Since demographics is what drives the economy, I believe that biggest source of the problem is the abomination of law passed by bigoted, immoral, liberal supreme court justices called Row v. Wade. Since the passing of this law FROM THE BENCH, over 50 million little, defenseless babies had their heads crushed and their brains sucked out just because women could not keep their legs crossed, because some found that having a baby was inconvenient or because Planned Parenthood talked people into abortion in order to increase their profits. (They should NOT receive federal funds.)
    Roe v. Wade was passed in January 1973, so those aborted would have been 0 to 39 years old. They would have required that schools were built, roads were updated, required a larger energy grid and that at least 20 million more homes/apartments were built. They would have gotten married, had children, raised families, bought a house or rented an apartment, bought clothes, bought food, bought refrigerators, computers, cell phones, books, washers, dryers, dish washers, furniture and many more products that would have caused more factories to be built to manufacture these products and more stores to sell them

    Report Post »  
  • Athinkerinaseaoflibs
    Posted on January 12, 2012 at 12:58pm

    To quote a revered Philosopher:

    Suprise, suprise, surprise

    –Gomer Pyle

    Report Post »  
  • lvjohn
    Posted on January 12, 2012 at 12:11pm

    Obama lies America dies.

    Report Post »  
  • hamline66
    Posted on January 12, 2012 at 11:46am

    This is the most dishonest least transparent administration in history. Everything that comes out as a government report or estimate should be totally disregarded. The only purpose of this administration is to prop up His Majesty Barack—-the worst and most corrupt ruler in American history. Yes I said ruler because this guy is not a President—-he is successfully setting himself up as the Supreme Ruler.

    Report Post »  
  • apu123
    Posted on January 12, 2012 at 11:44am

    I figured that the unemployment numbers were cooked. They don’t even use the raw number, they adjust the number of first time applications big time. The raw numbers are:
    W/E 12/3 523,642
    W/E 12/10 433,287
    W/E 12/17 418,466
    W/E 12/24 490,364
    W/E 12/31 535,112
    W/E 1/7 642,381
    I don’t know the methodology used to make the 100,000 or so first time apps disappear every week but it sure distorts the numbers.

    The whole financial system both here and in Europe, Japan and China is based on fudged numbers, manipulated bond auctions and hidden printing. I can not end well.

    Report Post »  
    • The Eradicator
      Posted on January 12, 2012 at 5:57pm

      Good job, APU123!

      By the way, anyone curious how th number is very conveniently under 400K, sitting right at 399,000?…I mean, really!?…Really, BHO!?

      Do we look that dumb!?…

      *grabs duct tape to put around head*

      Report Post » The Eradicator  
  • kspatriot
    Posted on January 12, 2012 at 11:17am

    I don’t believe ANYTHING that comes out of this administration. I GUARANTEE ALL of the numbers coming out of The White House or any of it’s departments have be skewed in the favor of OBAMA! Just as I don‘t believe a WORD that comes out of Obama’s mouth!

    Report Post » kspatriot  
  • sb36695
    Posted on January 12, 2012 at 11:16am

    Nothing to see here. Move along!

    Report Post »  
  • NewLife56
    Posted on January 12, 2012 at 11:16am

    “Obama last week ”We’re moving in the right direction”

    Hmmm..haven’t heard a peep form him today

    Report Post » NewLife56  
  • Moe1138
    Posted on January 12, 2012 at 11:02am

    When I first heard of the fungicide found in juice, I knew right away it was from a foreign source. More and more I’m seeing juice from South America and China. I ONLY buy 100% juice from American sources. I know, I know, it costs more. Are you going to put a cost on your families security?
    Research, people, research.

    Report Post » Moe1138  
    • Liberalismsamentaldisorder
      Posted on January 12, 2012 at 11:18am

      Exactly. Many countries that we import FOOD from openly hate us, and we think that food is safe? WAKE UP SHEEPLE!

      Report Post »  
    • huey6367
      Posted on January 12, 2012 at 12:50pm

      I buy oranges (I live in Florida) and make my own. Problem solved.

      Report Post »  
  • johnpaulkuchtajr
    Posted on January 12, 2012 at 10:50am

    Whoa, hoss!

    The Obama administration fudging numbers on the unemplyment report?

    Now you and I both know that Daley would have never taught Barry Soetoro to do anything of the sort.

    Report Post »  
    • AvengerK
      Posted on January 12, 2012 at 11:18am

      Gosh how “unexpected” it was holiday hiring that was responsible for the “improving” employment numbers? And lo and behold, holiday shopping tightened up, housing prices continue to lower…and the spectre of a Euro meltdown still very real and very close by. And what’s Obama doing to prepare us for the worst? He’s having dinner with “Brangelina” while his wife is angry at being told she appears angry. The only thing that will help us prevent another painful recession this year is improved employment and consumer confidence along with rising home prices…none of these are taking place or even appear to be taking place…all thanks to Obama’s failures, laziness, corruption and ineptitude.

      Report Post »  
  • seemsew
    Posted on January 12, 2012 at 10:37am

    EVERY TAXPAYER WAKE UP!! I don’t mind paying taxes to help people who have lost their jobs to get over the initial shock of being unemployed, but too often I am hearing people who have been on the dole for long periods of time making statements such as…”if this is like retirement I could get used to this. Hope they keep extending the unemployment terms.”

    I’m tired of paying for someone to be lazy and accepting of handouts so the can “retire early.”

    Report Post » seemsew  
    • JohnTwoFeathers
      Posted on January 12, 2012 at 10:41am

      Its Bushes fault

      Report Post »  
    • oldguy49
      Posted on January 12, 2012 at 10:43am

      yep….last month there was a story about an ex walmart cashier taking welfare payment from customers for things like lobster and electronics……..the best one was when she had a customer that had a welfare card that was issue during the ducacus {sp}.term, which was before she was born

      Report Post »  
  • TRILO
    Posted on January 12, 2012 at 10:36am

    Where to begin. Fake numbers from the Labor Dept once again. You can never believe the cr@p they spit out as real numbers; China’s economic prosperity slipping… no one to buy their cheap goods anymore; Sorry Sears you did not keep up with the times (wonder if they are too big to fail?) and the orange juice issue…. just another reason to buy American products with American ingredients. Read your food labels. If it does not show the country of origin do not buy it. I only trust products that come from the US, Canada and France.

    Report Post » TRILO  
    • Melvin Spittle
      Posted on January 12, 2012 at 10:39am

      “. just another reason to buy American products”

      The problem with trying to buy American is that no one would have known that the juice contains oranges from Brazil. They do have to label produce but not products made from produce.

      Report Post » Melvin Spittle  
    • Liberalismsamentaldisorder
      Posted on January 12, 2012 at 10:59am

      Sears, Target, Woolworth’s, Zayre’s, Ames, etc. etc. are trying to keep up with the times. Sadly, much like how we pick politicians, we pick where we shop. How’s the service in Walmart? Like the store? How’s the product quality? People readily admit they hate it, but go there anyway. Why? They believe they’re saving money, so they put up with crap. Compare prices, Walmart is generally only significantly cheaper on items that are of such low quality, they don’t even perform their intended function once. Sound like how we elect presidents? Perhaps the worst professional insult you can hurl at someone is to call them a “used car salesman” or maybe “politician” Our expectations are such that we expect disappointment.

      Report Post »  
    • JLGunner
      Posted on January 12, 2012 at 11:25am

      @ Lib, you are so right. Ever use tools with the brand “Popular Mechanics”? what garbage. I tried usung a ratchet on a bolt and the whole thing fell apart. lol

      Report Post » JLGunner  
  • JLGunner
    Posted on January 12, 2012 at 10:30am

    I love an ice cold bottle of Coca Cola!!! With some McDonalds fries, also a helping of mac and cheese from Boston Market. Oh. lets not forget Chick- Fil-A .What a great Chrisatian company .

    Report Post » JLGunner  
  • burke
    Posted on January 12, 2012 at 10:25am

    We have to get rid of this Muslim in the whitehouse.

    Report Post »  
    • azkidd
      Posted on January 12, 2012 at 11:30am

      last time I checked there wasn’t one Einstein.

      Report Post »  
  • Commerce Exchange
    Posted on January 12, 2012 at 10:25am

    MArkets are about to change in a matter of weeks. the ground is being layed for that. Europe will be test ground, maybe the US upto a certein extent.
    http://www.ecomm-unity.com/group/financial-crisis-worldwide/forum/topics/conspiracy-theory-big-corp-reshaping-europe

    Report Post » Commerce Exchange  
  • C. Schwehr
    Posted on January 12, 2012 at 10:24am

    Of COURSE the government is under-reporting it’s unemployment figures. If we knew the real figures, people would panic because we are currently seeing unemployment at a level never seen since the early 1930s!!!! WE ARE IN A DEPRESSION, PEOPLE!!!!!
    RECORD UNEMPLOYMENT

    RECORD BANKRUPTCY

    RECORD LIES FROM OBAMA!

    Report Post »  

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