Jobless Claims Further Sour Street's Mood

Posted Dec 17th 2009 9:30AM by Mark Fightmaster
Filed under: Before the Bell, Bad News, Economic Data

What started as a rough morning have become even rougher after the weekly release of jobless claims. Initial jobless claims unexpectedly increased by 7,000 in the past week to total 480,000, reversing the recent trend. While the dollar remained higher, both crude oil and treasuries reacted negatively to the news.

The consensus called for a drop to 465,000 initial claims in the past week. The number of claims in the prior week was revised down to 473,000 from the originally reported 474,000. The four-week average for jobless claims dropped, marking a 15th straight week.

Many may try to take solace in the fact that jobless claims remain below 500,000, but the fact that there was an unexpected increase in claims is a bit unsettling. It sure seems that this data indicates the economy isn't as healthy as many believe or would want to believe.

The question is what is going to happen after the first of the year? Many of the seasonal workers may be out of a job and collecting unemployment, pushing the number of jobless claims higher. Such data could serve to push the market lower still.

Tags: bad news, BadNews, economic recovery, EconomicRecovery, inthenews, jobless claims, JoblessClaims