Reply To: Traders Market Weekly: Consumers Along for The Ride


For the week ending May 4, initial jobless claims increased by 22,000 to 231,000 (consensus), which is the highest count since last August. Continuing jobless claims for the week ending April 27 increased by 17,000 to 1.785 million.

The key takeaway from the report is the jump in initial claims, which will be construed as a sign of softening in the labor market. That view, in turn, will be construed as a possible trigger for a Fed rate cut in coming months.

Treasury yields turned lower in response.

The 10-yr note yield moved from 4.52% to 4.48% immediately after the data. It sits at 4.50% now.