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

NEW YORK (Reuters) - The number of U.S. workers filing new applications for jobless insurance was unchanged last week, but the four-week moving average of claims dropped to its lowest in almost a year, according to government data on Thursday.

KEY POINTS: * Initial claims for state unemployment benefits were flat at a seasonally adjusted 505,000 in the week ended November 14, the Labor Department said. New claims have been grinding lower in recent weeks, indicating a slowdown in the pace of layoffs. * Analysts polled by Reuters had forecast new claims edging up to 505,000 last week from a previously reported 502,000. * New jobless claims are being watched for signs of when job losses might bottom. Applications have dropped significantly from March's lofty levels, but remain above the 400,000 mark that analysts say would signal payrolls growth. * The four-week moving average for new claims fell 6,500 to 514,000 last week, the lowest since November last year and declining for the 11th straight week.

COMMENTS:

JENNIFER LEE, ECONOMIST, MANAGER, BMO CAPITAL MARKETS, ECONOMIC RESEARCH:

"This is a little disappointing, as there was some expectation that first-time claimants would dip their toes below the 500,000 mark but alas, it didn't happen. Now this week's figures get a little more scrutiny than usual given that they cover the survey week for the November nonfarm payroll report. Claims are 26,000 below the last survey period, the third month in a row that they've declined, which points to smaller job losses. Still significant, mind you, but smaller."

SUBODH KUMAR, CHIEF INVESTMENT STRATEGIST, SUBODH KUMAR & ASSOCIATES, TORONTO:

"I still think the jobless numbers are coming down very slowly, obviously they're improving from the start of the year.

"I don't think the jobless numbers will be big movers today, they're not big enough for that."

ANNA PIRETTI, SENIOR ECONOMIST, BNP PARIBAS, NEW YORK:

"Obviously the initial claims data was somewhat disappointing. We had no improvement there. But continuing claims, which are lagging, did point to some small improvement. Again, less than the market was looking for, but nevertheless, slightly positive news.

"We have to remember, however, that the continuing claims do not include the extended benefits and the emergency unemployment benefits that were legislated as part of the fiscal stimulus package, and those continue to rise and so the headline numbers mask the true picture.

"Overall I would say the picture for the labor market is of a very, very slow improvement. But clearly in terms of the unemployment rate, we're likely to continue to see deterioration."

CHRIS RUPKEY, CHIEF FINANCIAL ECONOMIST, BANK OF TOKYO-MITSUBISHI UFJ, NEW YORK:

"It is headed in the right direction. They were a little high at 505,000 but the continuing claims coming down and the initial claims staying down is additional evidence that the labor market is stabilizing and that the day is drawing closer when non-farm payrolls will actually go positive. We are looking for payrolls to go positive in November, December or January, somewhere in that time frame.

"We are well on track to taking the talk away that this is a jobless recovery. It is probably going to be slow jobs creation but the day is drawing closer when we are going to see the labor market not just stabilizing but employers coming out and starting to hire."

DAN COOK, SENIOR MARKET ANALYST, IG MARKETS, CHICAGO:

"The number came out in line, I would have loved, and I think a lot of people would have loved to see a surprise down into the upper 400s. Just seeing a 4 in front of that number instead of a 5, I think psychologically we'd probably get a bit better kick off it."

LARRY MILSTEIN, HEAD OF GOVERNMENT AND AGENCY TRADING, R.W. PRESSPRICH & CO., NEW YORK:

"The employment picture has not improved much with the number still at 500,000. We need to see that number come down substantially to show that things are improving."

"It seems this morning the market was searching for direction. This morning's data will not have significant impact. We are coming into year-end so people are looking for a place to have some safety. That should keep a bid for Treasuries. They want to lock in the gains they earned. Bernanke and other Fed officials have suggested they will hold rates low for an 'extended' period of time. Inflation is not an issue right now."

TOM SOWANICK, CHIEF INVESTMENT OFFICER, OMNIVEST GROUP, PRINCETON, NEW JERSEY:

"This was a bit disappointing because they did not break below the 500,000 level. But given the Veteran's day holiday, there may be some noise. On the positive side, the four-week moving average continues to decline and is now at its lowest levels since February."

MARKET REACTION:

STOCKS: U.S. stock index futures hold losses BONDS: U.S. Treasury debt prices add to gains briefly DOLLAR: U.S. dollar holds gains