This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Economic Recovery Choppy Yet Determined

NEW YORK ( TheStreet) -- Amid fits and starts, the U.S. economy appears to be strengthening, according to Thursday's barrage of economic data.

Initial jobless claims in the week ended Aug. 10 fell 15,000 to a lower-than-expected 320,000, the lowest level since late 2007, according to the Labor Department Thursday. Economists polled by Thomson Reuters were expecting jobless claims of 335,000.

Continuing claims in the week ended Aug. 3 was 2.969 million, down 54,000 from the prior week but even with economists' average forecasts of 3 million.

The National Association of Home Builders' housing market index rose to a better-than-expected 59 in August from 56 in July. A fall to 56 was expected.

The consumer price index rose 0.2% in July, as expected, after increasing 0.5% in June, according to the Bureau of Labor Statistics. The core CPI, which excludes food and energy costs increased 0.2%, also in line with expectations, after increasing 0.2% the prior month. The Empire State manufacturing index fell to 8.2 in August from 9.46 in July, remaining positive. A rise to 10 in August was expected.

And industrial production came in flat in July, after increasing by a downwardly-revised 0.2% in June, according to the Federal Reserve. Economists were expecting a rise of 0.3% in July.

The recovery shows progress but more akin to two steps forward and one step back than a full-blown acceleration.

"The news that U.S. industrial production was flat in July does little to dent the improving economic outlook, especially when the survey evidence has been more upbeat ... the survey evidence, such as this morning's Empire State manufacturing index, has remained positive," Paul Dales, a London-based senior U.S. economist at Capital Economics explained in a note.

"And overseas demand appears to be strengthening. As such, industry will soon be growing at a respectable rate. In any case, the fall in initial jobless claims last week, to a six-year low ... suggests that growth in other parts of the economy is helping the labor market."

The general business conditions index of the Philadelphia Fed's Business Outlook survey declined to 9.3 in August from 19.8 in July. A fall to 15 in August was expected. Nevertheless, the index remains above its six-month average of 6.6.

-- Written by Andrea Tse in New York

>To contact the writer of this article, click here: Andrea Tse.>

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 18,030.21 +6.04 0.03%
S&P 500 2,081.88 -0.29 -0.01%
NASDAQ 4,773.4720 +8.0480 0.17%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs