Reply To: Traders Market Weekly: Inflation and Bank Earnings

#50803
Truman
Participant

Initial jobless claims for the week ending December 31 decreased by 19,000 to 204,000 (consensus 225,000). That is the lowest level of initial claims since September. Continuing jobless claims for the week ending December 24 decreased by 24,000 to 1.694 million.

The key takeaway from the report is that the low level of initial claims — a leading indicator — is a telltale sign of a tight labor market that is going to keep the Fed on edge about inflation remaining elevated in spite of some other signs of weakening in the broader economy.