Weekly jobless claims spiked to 382,000 last week from an upwardly adjusted 367,000 the week before, topping analyst expectations by 12,000.
Meanwhile, the empty chair held a Vegas fundraiser, yucking it up with Jay-Z and Beyonce for $40,000 a pop, before the bodies in Libya were cold.
The 15K jump is the biggest weekly spike in 2 months and 4th largest this year. Just as relevantly, as we warned months ago, those on extended claims continue to run out at a fast pace, with 41K people losing their extended benefits, down by nearly 1.8 million from a year ago, and are forced to seek disability benefits to keep the government dole running. More importantly, and just as Bernanke is doing his best to stoke inflation, producer prices soared by 1.7% in August, up from July’s 0.3%, and well above expectations of 1.2%. This was the biggest M/M spike since the 1.9% surge in June of 2009, and was driven primarily by soaring food prices, which however as everyone knows, is not really a factor in the Fed’s thinking.