Initial Jobless Claims Worse Than Expected, Near 3-Month Highs

Following the last two weeks' dramatic surge in initial jobless claims it was expected that a pull back would occur and it did but the last week's 278k print is still worse than expected - the third weekly miss in a row (the first time since January). The downtrend remains 'broken' as the 4-week-average prints at 3-month highs, catching up to weakness in layoffs, earnings, macro data, ISM/PMI surveys, and retail stocks.

 

3rd weekly miss in a row...

 

With the 4-week average now at 3-month highs...

 

Are claims catching up to layoffs?

 

Or did the retail recovery just implode?

 

June looms though.

Charts: Bloomberg