The number: Initial jobless claims have surged to 500K. This is worse than expected, and establishes a clear negative trend. Several weeks ago, this number had seemed to stall out around 450K, but now that’s just a memory, as the direction is definitely upward.
After being only modestly down earlier, stocks are clearly set to head much lower.
This chart, which is a little out of date, because it doesn’t capture the recent rise, shows just how sharply we went from improvement to stall out. And now it’s drifting higher.
Just moments before this came out, Intel announced its offer for McAfee, which seemed like it might buoy the market.
Photo: Calcualted Risk
Background: You know the drill, this number used to be something that was not watched to closely, but with the labour market sputtering, this has become a new obsession. Analysts expect around 460K initial claims
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