Continuing Unemployment Claims Drop; Dow Ends Higher
The Dow ended on a higher note today, thanks in part to the fact that continuing unemployment claims have dropped for the first time since January. Today’s employment data showed that continuing claims fell by 148,000. This news is providing some encouragement to those who are looking for evidence that the recession might be coming to a close. MarketWatch reports on the indications offered by the drop in continuing unemployment claims:
The continuing claims drop “convincingly ended the 19-week string of new all-time highs, and may suggest that the more general rate of gain for these figures is diminishing,” said analysts at Action Economics. “This slower rate of climb may signal that the uptrend in the jobless rate may soon slow as well.”
The stock market does well when there is confidence. Indeed, the stock market greatly depends on perception. It does well when there is a perception of strength in the economy, and poorly when the idea of weakness sends investors looking toward investments that are considered relatively safe.
Today, the Dow ended 58 points higher. The Nasdaq was just barely in the red, the S&P 500 was up more than 7 points. These are rather modest results, but still better than what has been seen the past few sessions, with losses mounting. A positive end to the day was much needed by the stock market.
Additionally, it appears that continued talk by the Obama Administration, with regard to its proposed regulatory reform, has not had too bad an effect on the stock market. At least the proposal hasn’t sent investors rushing into a sell-off to prove their displeasure.
Disclaimer: I am not an investment professional. Nothing in this piece or on this Web site should be construed as investment advice. Before making investment decisions, do your own research and/or consult with an investment professional. All investment comes with the risk of loss. You are responsible for your own investment decisions and any loss that may result from your decisions.
