US Jobless Claims Lowest Since 1969

US Jobless Claims Lowest Since 1969

US Jobless Claims Lowest Since 1969

$DIA, $SPY, $QQQ, $RUTX, $VXX

The number of Americans filing for unemployment benefits dropped to a more than 48.5 year low last week as the labor market strengthens further.

Other data Thursday showed manufacturing activity in the mid-Atlantic region accelerated in July amid a surge in orders received by factories. But the Philadelphia Federal Reserve survey also showed manufacturers paying more for inputs and less upbeat about business conditions over the next 6 months.

Fewer manufacturers planned to increase capital spending, suggesting trade tensions, marked by tit-for-tat import tariffs between the United States and its trade partners, including China, Canada, Mexico and the EU, could be starting to hurt business sentiment.

The survey came on the heels of the Federal Reserve’s Beige Book report on Wednesday,showing manufacturers in all districts worried about the tariffs and reporting higher prices and supply disruptions, which they blamed on the new trade policies.

Yesterday’s Beige Book and the recent decline in the investment intentions balance in the Philly Fed survey show that escalating trade tensions are starting to have a material impact on companies’ confidence about the future.

Initial claims for state unemployment benefits dropped 8,000 to a seasonally adjusted 207,000 for the week ended 14 July, the lowest reading since early December 1969, the Labor Department said. 

Economists polled had forecast claims rising to 220,000 in the latest week.

The 2nd straight weekly decliner in claims may reflect difficulties adjusting the data for seasonal fluctuations around this time of the year when motor vehicle manufacturers shut assembly lines for annual retooling.

The 4-Week MA of initial claims, considered a better measure of labor market trends as it irons out week-to-week volatility, fell 2,750 to 220,500 last week.

Thursday, the major US stock market indexes finished at: DJIA -134.79 at 25064.50, NAS Comp -29.15 at 7825.31, S&P 500 -11.13 at 2804.23

Volume: Trade on the NYSE came in at 735-M/shares exchanged

  • NAS Comp +13.4% YTD
  • Russell 2000 +10.8% YTD
  • S&P 500 +4.9% YTD
  • DJIA +1.4% YTD

HeffX-LTN’s US Major Stock Market Indexes Technical Analysis

Date Symbol Price Technical Analysis Support Resistance
19 July 2018 QQQ 179.62 Bullish (0.37) 179.55 185.86
19 July 2018 DIA 250.79 Neutral (0.24) 250.66 253.94
19 July 2018 SPY 280.42 Bullish (0.42) 279.77 286.58

Stay tuned…

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Paul Ebeling

Paul A. Ebeling, polymath, excels in diverse fields of knowledge. Pattern Recognition Analyst in Equities, Commodities and Foreign Exchange and author of “The Red Roadmaster’s Technical Report” on the US Major Market Indices™, a highly regarded, weekly financial market letter, he is also a philosopher, issuing insights on a wide range of subjects to a following of over 250,000 cohorts. An international audience of opinion makers, business leaders, and global organizations recognizes Ebeling as an expert.

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