Initial claims for the week ending July 15 decreased by 9,000 to 228,000 (consensus 240,000). That is the lowest level of initial claims since mid-May when the S&P 500 was around 4,100 or 11.4% lower than where it is today. Continuing jobless claims for the week ending July 8 increased 33,000 to 1.754 million.
The key takeaway from this report is that it connotes continued strength in the labor market and presumably not much fear about an imminent and material drop-off in end demand knowing that initial jobless claims are a leading indicator.
Treasury yields turned higher in response to the data.
The 2-yr note yield, at 4.81% just before 8:30 a.m. ET, is up nine basis points to 4.85%.
The 10-yr note yield, at 3.78% before 8:30 a.m. ET, is up nine basis points to 3.83%.