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Wall Street Strategies has been providing independent stock market research since 1991 to individual, retail and institutional clients through a balanced approach to investing and trading. Charles Payne, our founder and chief analyst, is routinely sought after for his stock market, political,... More
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  • THE COUNTDOWN CONTINUES - By Jennifer Coombs 0 comments
    Jun 5, 2014 1:42 PM

    Some rather surprising economic data, from mid-morning, has caused the equity markets to rebound back into the green for the afternoon session. Both the S&P 500 and the Dow Jones Industrial Average have continued their rallies to touch new all-time intra-day highs. It's looking as though both will end the day on that high note as well. All of this is really encouraging ahead of tomorrow's jobs report.

    The market looked as though it was going to have another down-session by mid-morning; however the release of the initial and continuing weekly jobless claims breathed some life back into the rally. Initial jobless claims edged higher in the week of May 31st, up by 8,000 to 312,000. Despite the increase, this trend still points to an overall improvement. The 4-week average is down 2,250 to a new recovery low of 310,250 - that's about 10,000 claims less than the month-ago trend. Continuing jobless claims (which lag in data by a week, so the reading was for the week of May 24th) continued to move lower. The level of continuing claims was down by 20,000 to 2.603 million, which is a new recovery low. The 4-week average also reached a new recovery low, and is presently down 18,000 to 2.635 million. At present, the unemployment rate for insured workers is unchanged at a recovery low of 2.0%. While this is all good news, we note that the economy needs to experience a 4-week rolling average consistently below 300,000.

    So why the huge pop in the market? There aren't any special factors distorting the jobless claims this week - finally! In contrast to the other indicators listed this week, the ADP and ISM, this one points to some untainted strength for tomorrow's jobs report. Clearly, there are more buyers than sellers today, so perhaps we will be in for a surprise tomorrow morning.

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