INSTANT VIEW: U.S. continuing jobless claims at record

NEW YORK (Reuters) - The number of U.S. workers continuing to claim jobless benefits jumped to a record high in the first week of February, the Labor Department data showed on Thursday, while new claims for unemployment insurance were unchanged at a very high level.

U.S. producer prices rose faster than expected in January after falling for five straight months as energy costs rebounded, government data showed on Thursday, but inflation pressures generally remained benign.

KEY POINTS:

JOBLESS CLAIMS: * The number of people remaining on the benefits rolls after drawing an initial week of aid surged 170,000 to 4.987 million in the week ended Feb 7, the most recent week for which the data is available. That was the highest reading on records dating back to 1967. * Analysts had estimated so-called continued claims would be 4.86 million from a previously reported 4.81 million the prior week. * Initial claims for state unemployment insurance benefits were a seasonally adjusted 627,000 in the week ended February 14 unchanged from an upwardly revised 627,000 the previous week. * New claims hovered close to a 26-year high. * Analysts polled by Reuters had forecast 620,000 new claims versus a previously reported figure of 623,000 the week before. * The four-week moving average of new jobless claims, a better gauge of underlying labor trends because it irons out week-to-week volatility, rose to 619,000, the highest since 1982, from 608,500 the prior week.

PPI: * The Labor Department said the producer price index rose 0.8 percent in January, rising for the first-time since July, compared to a 1.9 percent drop in December. * Analysts polled by Reuters had forecast a 0.2 percent rise in the overall index. * Compared to the same period last year, the producer price index fell 1 percent, the largest decline since October 2006. * Core producer prices, excluding food and energy costs, rose 0.4 percent in January, also above market expectations for an increase of 0.1 percent. * Core PPI rose 0.2 percent in December. * Compared to the same period a year ago, core producer prices were up 4.2 percent. * Energy prices surged 3.7 percent in January, halting five months of declines. Gasoline prices jumped 15 percent, the biggest increase since November 2007. * Food prices fell 0.4 percent, with declines in diary and meat costs more than offsetting sharp increases in vegetables.

COMMENTS:

CHAD MORGANLANDER, PORTFOLIO MANAGER, STIFEL, NICOLAUS & CO, FLORHAM PARK, NEW JERSEY:

JOBLESS CLAIMS:"The persistent trend in job losses will have a negative feedback loop in the economy. On a short-term basis, you might get a relief rally predicated on the fact that we're oversold. Long term, I'm concerned about economic trends which have deteriorated.

"Consensus views on economic growth in 2009 have to be revised downward."