INSTANT VIEW: U.S. jobless claims fall in latest week

NEW YORK (Reuters) - The number of U.S. workers filing new claims for jobless benefits fell last week, but the prior period's figure was revised up, according to a government report on Thursday that highlighted the fragility of the labor market.

KEY POINTS: * Initial claims for state unemployment insurance benefits fell 4,000 to a seasonally adjusted 570,000 in the week ended August 29 from an upwardly revised 574,000 the prior week, the Labor Department said. * Analysts polled by Reuters had forecast new claims falling to 560,000 last week from a previously reported 570,000. * A Labor Department official described the report as straight-forward. * The four-week moving average for new claims, considered a better gauge of underlying trends as it irons out week-to-week volatility, rose 4,000 to 571,250 last week.

COMMENTS:

GARY THAYER, MACROSTRATEGIST, WELLS FARGO ADVISERS, ST. LOUIS:

"Jobless claims were close to expectations. We are seeing signs that the labor market is stabilizing. It would be better to see that number come down more. That would offer confirmation that the economy is turning the corner and doing better. That, however, is not going to happen quickly. It may be several months before we see jobless claims come down to the level marking the threshold of recession -- around 400,000."

HUGH JOHNSON, CHIEF INVESTMENT OFFICER, JOHNSON ILLINGTON ADVISORS, ALBANY, NEW YORK:

"The claims numbers jump around a great deal from week to week, so I don't put a lot of weight on any one week's numbers. The truth is the numbers declined, they didn't decline as much as had been expected. But I don't think that is a market moving event, particularly because it comes ahead of the employment report. What does that tell us, it doesn't tell us much. But it gives you the sense, if you look at claims over time, that we continue to shed jobs at a slower pace. The consensus forecast a job loss in tomorrow's report is about 200,000 to 230,000, my guess is -- and that's all it could be -- is that it will be a little bit steeper, worse than that at 250,000, but forecasting changes in payrolls is virtually impossible. There is almost no statistical relationship."

TODD SCHOENBERGER, MANAGING DIRECTOR, LANDCOLT TRADING, SAN ANTONIO, TEXAS:

"What concerns me more than ever is that we haven't seen the job growth many Americans have been hoping for. At this point, with all the stimulus money as well as seasonal factors, we should be seeing the jobless number below 500,000. This is looking more and more like a jobless recovery."

TOM SOWANICK, CHIEF INVESTMENT OFFICER, CLEARBROOK PARTNERS, PRINCETON, NEW JERSEY:

"(The) drop just keeps claims at the lower end of range, suggesting that employment conditions continue to stabilize. The real story of the day is the two day equity rally in China. Was it orchestrated by the government? Perhaps."

MARKET REACTION: STOCKS: U.S. stock index futures pare gains BONDS: U.S. Treasury debt prices trim losses DOLLAR: U.S. dollar holds losses versus euro; pares gains versus yen