U.S. weekly jobless claims rise moderately; labor market regaining footing – Reuters, 3/4/2021

• The number of Americans filing new claims for unemployment benefits rose last week, likely boosted by brutal winter storms in the densely populated South in mid-February, though the labor market outlook is improving amid declining new COVID-19 cases.
• Initial claims for state unemployment benefits increased 9,000 to a seasonally adjusted 745,000 for the week ended Feb. 27, the Labor Department said. Economists polled by Reuters had forecast 750,000 applications in the latest week.
• Unadjusted claims rose 31,519 to 748,078 last week. Filings increased significantly in Texas, as well as in Ohio, which has been plagued by fraudulent applications. There was also a large rise in claims in New York.
• The number of people receiving benefits after an initial week of aid dropped 124,000 to 4.295 million during the week ended Feb 20. But that was mainly due to people exhausting their eligibility for benefits, limited to 26 weeks in most states.
• At least 4.465 million people were on extended benefits during the week ended Feb. 13. These benefits, which are funded by the government, will expire in mid-March if Congress does not pass the Biden administration’s relief package.
• At least 18 million people were on unemployment benefits under all programs in mid-February.

30-Year Mortgage Rate Tops 3% for First Time Since July – Wall Street Journal, 3/4/2021

• Americans who purchased new homes or refinanced their current ones over the past few months may have done so at just the right moment.
• The average rate on a 30-year fixed-rate mortgage rose to 3.02%, mortgage-finance giant Freddie Mac said Thursday.
• It is the first time the rate on America’s most popular home loan has risen above 3% since July and the fifth consecutive week it has increased or held steady.
• Mortgage rates tend to move in the same direction as the yield on the 10-year Treasury, which has been rising.
• Treasury yields rise when investors feel confident enough in the economy to forgo safe-haven assets such as bonds for riskier ones including stocks.

Democrats to Change Eligibility for Stimulus Checks in Covid-19 Aid Bill – Wall Street Journal, 3/3/2021

• Senate Democrats agreed Wednesday to narrow eligibility for some of the direct payments that are part of President Biden’s proposed $1.9 trillion Covid-19 relief package, a concession to centrists whose support is needed to pass the bill.
• The biggest change to emerge Wednesday would shrink the $1,400 checks to zero more quickly for individuals making more than $75,000 and married couples making more than $150,000, according to lawmakers and aides.
• Lawmakers in the Senate are expected to bring the payments to zero for individuals making $80,000 and married couples making $160,000.
• Individuals making less than $75,000 and married couples with incomes lower than $150,000 will still receive the full $1,400 check.
• Party leaders resisted another push by centrists, to reduce the size of weekly federal unemployment benefits in the bill.
• “I just think that the bill has really enough good stuff, really does have enough good stuff, that we should be able to make this work,” said Mr. Manchin, who had pushed to lower the weekly jobless benefits to $300.

U.S. Businesses Optimistic About Economy Due to Vaccines and Hiring, Fed Beige Book Says – Wall Street Journal, 3/3/2021

• Most businesses are optimistic about the economic recovery this year as coronavirus vaccines are more widely distributed and hiring picked up slowly across the country, a Federal Reserve report said Wednesday.
• The Fed’s periodic compilation of anecdotes from business contacts, known as the Beige Book, said the U.S. economy continued to grow modestly in the first several weeks of 2021, though some industries, such as leisure and hospitality, continued “to be restrained by ongoing Covid-19 restrictions.”
• The Fed said the economy expanded in eight of the Fed’s 12 regions, with areas including the Northeast reporting mixed or stagnant results. The New York area economy declined modestly and the Boston area saw mixed results, the report said.
• While the report said business contacts expect hiring to pick up, it also said many businesses are having trouble finding workers, particularly in low-skill occupations and skilled trade positions. “Constraints on labor supply included those related to Covid-19, child care, and unemployment benefits,” the report said.
• Business costs such as materials rose moderately from January through mid-February, the Fed said, widely attributed in many regions of the country to supply-chain disruptions and high demand in areas such as housing.

Biden, Buttigieg to Push Infrastructure Plan – Wall Street Journal, 3/3/2021

• President Biden will meet Thursday with members of the House of Representatives to discuss his plans for an infrastructure package, a goal that has eluded Democratic lawmakers and his predecessor, Donald Trump, even as members of both parties and outside groups claim there is bipartisan support for such a measure.
• Joining the president will be Mr. Buttigieg, now 39, a former mayor of South Bend, Ind., and presidential candidate who says his local experience will help him lead the department that is a major source of federal grants for states and towns.
• Mr. Trump’s example may show how hard it is to deliver on something that all parties say they want. Campaigning for president in 2016, Mr. Trump vowed during a TV appearance to do twice as much as Democratic rival Hillary Clinton, who had initially proposed a $500 billion package, leading his aides to begin working to meet a $1 trillion target.
• In office, President Trump’s plans were undermined by his other priorities, such as overturning Obamacare, and his own resistance to elements of the plan designed by his administration.
• When Mr. Trump finally delivered a proposal to Congress in 2018, it was dead on arrival, thanks in part to the decision to put the burden for raising money for new projects overwhelmingly on states and cities, not the federal government.

EUROPE & WORLD

Saudis, Russia Discuss Joint Oil Output Raise Ahead of OPEC Meeting – Wall Street Journal, 3/4/2021

• Saudi Arabia and Russia are discussing a proposal to bring back a combined one million barrels a day of oil to global markets, people familiar with the matter said, as the countries prepare to hammer out a deal among an alliance of some of the world’s biggest producers.
• The two sides haven’t yet reached an agreement, and other members of the alliance—including other members of the Organization of the Petroleum Exporting Countries and a group of producers led by Russia—still haven’t weighed in, according to the people familiar with the matter.
• The proposal under discussion would commit Saudi Arabia to restoring about 500,000 barrels a day of unilateral cuts it has previously made, the people said. OPEC-plus members would then restore collectively another 500,000 barrels a day, including 125,000 from Russia.

Apple-supplier Foxconn flags strong start to year as lockdowns spur electronics demand – Reuters, 3/4/2021

• Apple supplier Foxconn said it expects first-quarter revenue to rise more than 15% from a year earlier, boosted by strong iPhone sales and robust demand for electronics during lockdowns worldwide to curb the COVID-19 pandemic.
• Taiwan-based Foxconn, in a short statement on Thursday, said it expects consumer electronics revenue, which includes smartphones and smart watches, to rise more than 15% in the January-March quarter from a year earlier. It did not elaborate.
• Foxconn said it saw revenue for cloud products that include servers and revenue for computing products such as laptops to rise about 10% in the first quarter, respectively.
• Foxconn’s chairman said last month that he expects his company and its clients will face only “limited impact” from a chip shortage that has rattled the global automotive and semiconductor industries.

Hyundai profit hit after electric car recall, but LG Chem seen bearing bulk of costs – Reuters, 3/4/2021

• A large global recall of electric vehicles has led Hyundai Motor to sharply revise down fourth-quarter operating profit, although reports said battery maker LG Chem would bear the bulk of the costs.
• LG will assume 70% of the estimated $900 million costs to replace battery systems in some 82,000 electric vehicles globally, according to Yonhap news agency and other South Korean media.
• Hyundai said on Thursday it was revising down fourth-quarter operating profit by 300 billion won ($265 million) or nearly a fifth to 1.3 trillion won, while LG Chem slashed its operating profit by more than 80% to 119 billion won.
• The new recall applies to nearly 76,000 Kona EVs built between 2018 and 2020, including about 25,000 sold in South Korea. Some Ioniq EV models and Elec City buses were also included.

Factmonster – TODAY in HISTORY

• The Constitution of the United States went into effect. (1789)
• Abraham Lincoln was inaugurated as president. (1861)