MONEY WORRIES – AT 8:37 A.M. ET:  The overnight financial numbers from Asian and European markets were in negative territory.  We await the opening bell on Wall Street to see if we'll get any relief from yesterday's bloodbath.

True, the stock market isn't the real economy, but it has a serious psychological effect on the country, and on American politics.

We also await the weekly unemployment report. 

Worries about the solvency of several major European countries, including France, Italy, and Spain, continue.  And the London riots, which many will interpret as reflecting economic and social stress, aren't helping the economic outlook.  Please remember that London hosts the 2012 summer Olympics.  A continuation of social unrest in the city, especially if it includes assaults on tourists, can have a devastating effect on Britain as it prepares for the games, and its place in the international TV spotlight.

Violence was substantially reduced in Britain last night, thanks to massively increased police presence.

UPDATE:  Claims for unemployment benefits decreased in the U.S.  From Bloomberg:

Claims for unemployment insurance payments in the U.S. unexpectedly fell last week to a four-month low, signaling the recent slowdown in payroll gains is due to a lack of hiring rather than more firings.

Applications for jobless benefits decreased 7,000 in the week ended Aug. 6 to 395,000, the fewest since early April, the Labor Department said today in Washington. Economists forecast 405,000 claims, according to the median estimate in a Bloomberg News survey. The number of people on unemployment benefit rolls and those getting extended payments also dropped.

COMMENT:  Good, but hardly encouraging.  Remember that this was the situation as of five days ago, and does not take account of the impact of the downgrading of U.S. credit.  Nor does it take account of the impact of this week's market drop.  I wouldn't see this as a significant trend.

August 11, 2011