Initial jobless claims came in at 388k, which is actually down slightly from last week’s 389k. However, last week’s 389k was revised up from a previous reading of 386k.
Nobody likes to see jobless claims trending up. However, what makes this trend particularly terrifying is that it reminds us of last year, when jobless claims shot up in the spring. This preceded a memorable stock market sell-off
Jeff Kleintop, Chief Market Strategist at LPL Financial, wrote about it this week:
Among the economic data released this week, initial jobless claims will be closely watched to see if they make a third consecutive week of deterioration and qualify as red flag number five out of our 10 leading indicators of another spring slide in the stock market and other “risk assets.”
Here’s a chart from Kleintop:
Photo: LPL Financial
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