INSTANT VIEW: New jobless benefit claims drop for a 4th week

NEW YORK (Reuters) - The number of U.S. workers applying for jobless benefits fell unexpectedly last week to the lowest level in four months, government data showed on Thursday, in a report showing a stable labor market even as the economy slows.

KEY POINTS: * First-time claims for state unemployment benefits fell to a seasonally adjusted 301,000 in the week ended January 19, from a slightly revised 302,000 the prior week. * Wall Street economists had forecast an increase to 325,000 in initial claims. * It was the lowest level since September and the fourth straight weekly decline. * Continuing claims fell to 2.67 million from 2.75 million and was below a 2.72 million estimate among economists.

COMMENTS:

CLEVELAND RUECKERT, BIRINYI ASSOCIATES INC., STAMFORD,

CONNECTICUT:

"Jobless claims were little bit better than expected. A lot of investors and traders are looking at that number as an indicator for the economy right now especially with this week being light on economic data.

"It's a weekly number so it's not as significant as a monthly change in non-farm payrolls. It did look like futures traded up a little bit on the numbers. But I think there are bigger things at work than just that number.

"One thing people haven't really talked about very much is the fact that the Federal Reserve cut rates by 75 basis points, a surprise cut. That's pretty significant. I think we're going to continue to have a rally on the back of that move."

SCOTT BROWN, CHIEF ECONOMIST WITH RAYMOND JAMES &

ASSOCIATES IN ST PETERSBURG, FLORIDA:

"The jobless claims data certainly is encouraging. However one of the things we have been looking at is the reduced pace of seasonal hiring in December and so we will get fewer seasonal layoffs in January. That said, it is consistent with the limited pace of job destruction.

"Things in the job market won't be all that strong, but not that horrible either. It's a bit of a negative for bonds."

ANNA PIRETTI, ECONOMIST, BNP PARIBAS, NEW YORK:

"(Although weekly claims are down,) continuing claims have remained much higher than we saw during the fall. More people may not be getting fired but people who have left the labor market and lost their jobs seem to have a harder time getting back. So this is not a bullish signal. And we also have to remember that the labor market lags the real economy."

ROBERT MACINTOSH, CHIEF ECONOMIST, EATON VANCE CORP,

BOSTON: