Thursday Weekly Jobless Claims Excites Stock Market Bulls, But Contain A Dangerous Element For The Future – The NewsRoom Syndicate
On Thursday morning the US Labor Department released its weekly jobless report, which reported that 779,000 Americans made first time unemployment claims. This was below the consensus estimates among economists for a 830,000 print on this number. That better than expected result helped to fuel a lot of excitement in the financial markets and helped to creating a morning rally in the S&P 500 and the US stock market.
However, the numbers also showed a huge drop in productivity per work and a jump in Labor Unit costs. Nasdaq.com reported, “unit labor costs skyrocketed by 6.8 percent in the fourth quarter after plummeting by a revised 7.7 percent in the third quarter.”
The unit labor costs were only expected to jump by 3.9%. This is a sign of inflation ticking up in the US economy, a process that most Americans expect will begin to impact them before the year is over, according to a survey done by the Federal Reserve.