Highlights
Jobless claims fell 21,000 in the Dec. 29 week to 336,000, pulling down the four-week average slightly to a still elevated 343,750. The Dec. 22 week was revised upward to 357,000 for the highest level in more than two years. Continuing claims for the Dec. 22 point to weakness in the job market, up 46,000 to 2.761 million.

Early indications for tomorrow's employment report are mixed. Initial claims did fall steeply in the latest week, a week however outside the mid-month period for the household survey and a week that contrasts with poor results in prior weeks. Continuing claims show weakness at mid-month while today's ADP report also points to weakness. Treasuries and the dollar reacted to the headline strength in the latest week with yields rising slightly and the dollar slipping.