TROUBLED ECONOMIC SIGNS

The US Department of Labor said that last week's initial jobless claims rose by 34,000 to a seasonally adjusted 386,000. These figures are higher than economists' expectations and reflect the lack of speed of the economonic recovery. The National Association of Realtors (NAR) reported that June's existing home sales fell 5.4%. Those figures are higher than the same month in 2011 but are nevertheless low. The good news is that average prices for homes are on the rise as inventories shrink in major attractive markets nationwide. Investors are likely to put the brakes on the bullish sentiments in the coming days as positive earnings are aligned with more downcast economic expansion. While corporate earnings have largely been positive, more often than not they are a result of cost cutting instead of organic growth or comparative sales gains.