Economic reports on employment and wholesale inventories have hit the Street today. First up, the Labor Department said that initial claims for unemployment benefits dropped by 20,000 to 478,000 in the week ended October 4. The weekly decline fell right in line with analysts' expectations. According to the Labor Department, "The effects of Hurricane Gustav in Louisiana and the effects of Hurricane Ike in Texas added approximately 17,000 claims to the total," compared to a storm-related boost of 45,000 in the previous week. The 4-week moving average of first-time jobless claims jumped by 8,250 to 482,500, marking its highest point in 7 years.

Meanwhile, the number of continuing jobless claims climbed by 56,000 to 3.66 million in the week ended September 27, exceeding economists' prediction for a rise to 3.60 million. It's the 24th consecutive week in which continuing claims exceeded 3 million.

Separately, the Commerce Department noted that inventories at U.S. wholesalers added 0.8% in August, outpacing the expected increase of 0.5%. Sales fell by 1%, marking their sharpest monthly drop since January 2007. Slipping petroleum sales weighed heavy on the results; they fell 2% for the month. Durable goods sales fell 1.5% in August, while durable goods inventories climbed 1.4%. The overall inventories-to-sales ratio rose from a 1.08-months' supply in July to a 1.10-months' supply.