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Another 898K Americans file for unemployment benefits

Yahoo Finances Emily McCormick joins The First Trade panel to discuss the latest jobless numbers.

Video Transcript

ALEXIS CHRISTOFOROUS: These numbers remain stubbornly high, Emily.

EMILY MCCORMICK: That's right, Alexis. Taking a look at that headline number, we saw US states reporting another 898,000 Americans filing first time unemployment insurance claims for that week ended October 10th that was higher than the 825,000 that had been expected, and the slightly upwardly revised 845,000 reported for the previous week. Now, we did see that increase come unexpectedly after four straight weeks previously that we had claims actually improving week-over-week. So another sign here of some slowing improvement and stagnation in the labor markets recovery.

Now, I want to highlight that we did see continuing unemployment claims trend lower. Those were reported on a one-week lag. For the week ended October 3, we saw those come in at just over 10 million-- that was better than the 10 and 1/2 million that had been expected and the 11.2 million that had been reported for the prior week. And that, itself, had also been upwardly revised.

Now, taking a look at these new unemployment claims, I want to also highlight that they did not include new updates out of California. That state has continued to pause in reporting its new claims on an unadjusted basis in order to work through its backlog. So we're still continuing to get that same number come in week after week for the past several weeks now on adjusted basis. So even with the fact that California, the most populous state, hasn't been reporting those new claims, we still got this increase on a week-over-week basis.

And the last thing I want to highlight here is that we did see unadjusted claims for the Pandemic Emergency Unemployment Compensation Program-- jump by more than 818,000 to 2.78 million for the week ended September 26. That was a surge in those who had exhausted their typical state aid and actually moved to claim the federal program's additional 13 weeks of benefits. So that's a sign here that we are seeing some of these longer-term layoffs and furloughs actually turn longer term as these individuals are exhausting their state programs. Alexis?

ALEXIS CHRISTOFOROUS: Yeah, that has been a trend, right-- those temporary layoffs becoming permanent layoffs. Emily, I want to turn attention now to a couple of big earnings reports out this morning. Looks like Morgan Stanley firing on all cylinders last quarter fueled by its trading desks.

EMILY MCCORMICK: That's right. And that's something that we also saw from a couple other big banks like JPMorgan Chase. And we did see exceptional strength here from Morgan Stanley's trading desk. We had equity sales and trading revenue up 14% over last year to $2.26 billion. Also, saw equity underwriting fees more than double over last year to $874 million. So really seeing strength in that equity capital markets business, especially. Now, we also saw fixed income trading revenues up 35% to $1.92 billion. And that was good to help boost overall net revenue to $11.7 billion, up from $10 billion in the same quarter last year.

Now, we also saw profit top expectations for Morgan Stanley, even given the low interest rate environment. Net income applicable to Morgan Stanley was up 25% over last year to $2.7 billion. Alexis?

ALEXIS CHRISTOFOROUS: All right, it looks like Americans were pretty busy buying at Walgreens last quarter. Breakdown that earnings report for us.

EMILY MCCORMICK: Well we saw Walgreens boost alliance with better than expected fiscal fourth quarter results, really driven by that retail pharmacy business. And we saw prescriptions filled increasing 1.6% and it's front of sales-- front of store sales actually rose 4.7%. We saw double digit growth here in the health and wellness categories and 8% growth in its personal care category, including personal protective equipment. That more than offset a small decline that we saw in its beauty category. And overall, we did see those retail pharmacy comparable same store sales rise 3.2% over last year. That was better than the 2.9% that had been expected.

Then finally, we did see adjusted earnings of $1.02 per share decline 28% over last year. We did see margins crimped a little bit here, but it was still ahead of estimates for $0.96 a share. Now, taking a look at that stock-- it is up about half a percentage point in early trading, outperforming against the declines in the broader market. Alexis?