We’ve pointed out for a long time that initial claims is one of the best concurrent stock market indicators.
The chart of the inverse of initial claims vs. the stock market is one of the most powerful pieces of evidence that the market’s movements have been fundamentals driven, rather than liquidity driven.
Anyway, today initial jobless claims spiked to their worst level since January at 380,000.
This is problematic for for the market, and it undercuts one of the chief bullish arguments, that declining initial claims was strong evidence that the job market wasn’t running out of steam.
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