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Markets are are shaky this morning after macro economic news releases for Jobless Claims and Existing Home Sales:

Initial Jobless Claims: Drop below 400,000!

The number of initial claims fell to 388,000, down 34,000 from an upwardly revised 422,000 claims reported last week. The current reading on the initial jobless claims is the lowest level of claims since the week ending July 12, 2008, when we saw 385,000 initial claims. The real question will be whether this is sustainable or just a brief dose of sugar coating from the spike in jobs fueling holiday retail shopping season…

Existing Home Sales: Increased 3.5%

Rose 3.5% vs. the consensus expected measure of a -3% decline.

The National Association of Realtors Chief Economis Lawrence Yun said, “If we add 2 million jobs as expected in 2011, and mortgage rates rise only moderately, we should see existing-home sales rise to a higher, sustainable volume…Credit remains tight, but if lenders return to more normal, safe underwriting standards for creditworthy buyers, there would be a bigger boost to the housing market and spillover benefits for the broader economy.”

Pending sales jumped in the West, however they dropped in the South and Midwest regions.

Source: Macro Economic Mashup: Good News for Jobless Claims and Existing Homes Sales