The Labor Department said in its weekly report this morning that initial claims for jobless benefits fell by 24,000 to 456,000 in the week ended April 17. The drop was in line with the expectations of economists surveyed by Dow Jones Newswires.
The levels still aren't low enough to be consistent with an improving job market, although the Labor Department's March report showed that jobs were being created. Overall unemployment remains at 9.7%.
In spite of the current job creation, economists believe that it will still take time to see an improved labor market. Federal Reserve Governor Elizabeth Duke, said it will take "sustained, robust job growth for some time" to help repair the damage from the 8 million jobs that were lost in the past three years."
President Obama's speech to Wall Street ought to have some strong language for the financial market this morning. The monstrous profits of Goldman Sachs and Citicorp will not be viewed positively by the public, and will provide significant fodder for congress to put financial reforms in place.
This morning's Minneapolis Star Tribune reported that Minnesota's United Health Group, the largest health insurer, by revenue, in the nation reported net income of $1.19 billion for the three months ended March 31. David Heupel, the portfolio manager with Thrivent Asset Management in Minneapolis summarized the company's good earnings in the eyes of regulators: "If you ever want to pour gas on the flame, United maybe just did." The quarter may have been too good in the eyes of the regulators. Just more reason to support health care regulations.