Initial Claims Fall 21K to Levels Near Lows of the Year
We won't split hairs. The claims number this morning is solid. It pushes both reported claims and rolling claims to levels near the lows seen YTD. Clealry this is a big step in the right direction. The question is, we've been here before - now multiple times this year - will they go lower or is this as good as it gets? We'll keep a close eye on claims. Remember, claims in the 375-400k range are low enough to start making a dent in the unemployment rate.
The headline initial claims number fell 21k last week to 434k (18k before the revision of last week's print). Rolling claims came in at 453.25, a decline of 5.5k over the previous week.
In the table below, we chart US equity correlations with Initial Claims, the Dollar Index, and US 10Y Treasury yields on a weekly basis going back 3 months, 1 year, and 3 years.
Joshua Steiner, CFA