Any hopes that the S&P would hit a new all time high on horrible initial claims data may have been dashed following a report that initial claims for unemployment insurance dropped from an upward revised 355K (was 352K) to 339K, better than the expected 350K, and down to a nearly fresh five year low. It was unclear immediately following the report which states were estimated if any: as a reminder last week the DOL announced that 2 states had their data estimated. Continuing claims dropped from an upward revised 3093K to 3000K, the lowest in 5 years. Of course, with millions of people now prematurely out of the labor participation rate, what if any data the initial claims report provides these days, is very much unclear.
Looking at the week ago, we find that the states with the biggest changes up and down in claims were NY and California:
- NY -14,113: Fewer layoffs in the transportation, educational services, and food service industries.
- CA +24,303: Layoffs in the service industry.
Finally, extended claims in the form of EUC, have finally seen their weekly wild gyrating oscillations quiet down.