Market Overview

Unemployment Claims Rise Slightly; S&P ETF Sees Resistance

Unemployment Claims Rise Slightly; S&P ETF Sees Resistance

The Department of Labor released data that indicated 10,000 more people filed for unemployment for the first time last week than the week ending January 9, bringing the total number of initial claims to 293,000 from 283,000 the previous week.

Analysts consider initial claim figures of under 300,000 indicative of a strong labor market, and the figure has not risen above that number in 46 weeks, according to CNBC.

The SPDR S&P 500 ETF Trust (NYSE: SPY) spiked to a daily high of 187.15 with the release of the news, which has served as a resistance throughout trading Thursday.

Related Link: Chowdhry: Major Tech Layoffs Are Coming, Fed's Dudley Is 'Clueless' On Labor Market

Jobless claims typically see a bump in January, when sectors such as agriculture and construction slowdown in colder parts of the country.

The three states with the highest number of insured unemployment claims, which are an indicator of long-term unemployment, were Alaska, New Jersey and Pennsylvania.

The overall unemployment rate hovers around 5 percent, down from a height of 10.1 percent in October 2009. The current rate is the lowest since the 2008 crash, but still north of the 10-year low of 4.4 percent the U.S. saw in October 2006.

Image Credit: Public Domain

Posted-In: Department of Labor employment Jobs Market laborNews Econ #s Economics General


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