Stock market news, weekly US jobless claims came in at worse than expected
Today the US weekly initial jobless claims and continuing weekly claims were released. The labor market and the unemployment market are very important economic indicators for the US economy and the stock market. A weak labor market is considered to be bad news for stocks, consumer spending, and GDP growth rate.
“A handful of recent economic data pointed toward a quicker-than-expected recovery, and the weekly initial jobless claims report Thursday provided investors with additional clues on the state of the U.S. labor market.
Another 1.508 million Americans filed for unemployment benefits in the week ending June 13, exceeding consensus expectations for 1.29 million. The prior week’s figure was revised higher to 1.57 million from the previously reported 1.54 million jobless claims. Over the past 13 weeks, more than 45 million Americans have filed for unemployment insurance.
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Continuing claims, which lags initial jobless claims data by one week, totaled 20.54 million in the week ending June 6 following 20.61 million in the prior week. Economists were expecting 19.85 million continuing claims for the week.
Initial jobless claims data isn’t necessarily a perfect indicator of the U.S. labor market, but it still is useful, according to Wells Fargo Securities. “Over-reliance on jobless claims led every forecaster to miss the increase in May nonfarm employment, but claims are still a useful indicator.”