US stocks enjoying a fierce run-up on the heels of yesterday’s triple-digit decline, highlighting a theory Todd Harrison pointed to this morning that the market’s initial reaction following a Fed meeting, or in this case testimony, is often the false move.
A slew of corporate earnings and a better-than-expected data on existing home sales are fueling the rally, which recently sent the Dow up 220 at 10340. But a disappointing jobless claims report, which is largely getting overshadowed amid today’s run-up, deserves more attention.
The number of workers filing initial claims for jobless benefits rose 37,000 to 464,000 in the week ended July 17, marking the biggest weekly rise since February.
So much for the recent positive momentum in jobless claims. They had dropped the prior two weeks in a row and hit 429,000, their lowest level since August 2008. But the latest run-up — new filings surging 37,000 marks the biggest weekly rise since February — takes the unemployment measure back above 450,000.
“Even if today’s rise in jobless benefits doesn’t mean much, there’s still the bigger problem that’s plagued this metric all year: It’s going nowhere fast,” James Picerno writes at The Capital Spectator. “As the weeks and months roll by without a material decline in new filings for unemployment insurance, it’s getting tougher to argue that the labor market’s salvation is just around the corner.”