For the week ending July 2, there were 235,000 unemployment claims filed, according to the U.S. Department of Labor.
What Happened: The seasonally adjusted figure for first-time claims was 235,000; this is an increase of 4,000 from last week’s figure of 231,000.
The number of new claims surpassed the four-week moving average of 232,500.
In addition to an increase from last week’s reporting, this figure represents the highest unemployment claim number since Jan. 15.
With the amount of new claims surpassing the moving average, a grim trend has begun to form. The figure is higher than the Dow Jones analyst expectation of 230,000 claims.
The SPDR Dow Jones Industrial Average ETF Trust (NYSE:DIA) and the SPDR S&P 500 ETF Trust (NYSE:SPY) are both trading higher Thursday morning.
Also Read: Apple, Microsoft, Disney And American Express Continue To Plummet: Dow Jones Index Has Worst First Half In Decades
The Market Reaction: For now, analysts and economists don’t seem to be concerned about the upward trend in unemployment. Many were expecting this trend as companies look to decrease costs as interest rates rise.
While in the long term high unemployment could become a pressing issue, it seems that for now the markets aren’t rattled by the higher number of claims.
Also Read: As US Economy Weathers Inflation, GDP Growth Turns Negative: Are We Headed For A Recession?
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