Now here’s some good news, which the market at least thus far is shrugging off after a three-day rally: Jobless claims fell 43,000 from the previous week’s reading, according to the US Bureau of Labor Statistics (BLS), to 184,000 total, the lowest point for initial benefit filings since Sept. 6, 1969, when they were 182,000.
The stock market’s reaction was underwhelming, though, with the S&P 500 down 0.5% this morning, following Wednesday’s rise of 0.31%. Analysts attributed today’s pullback to concerns about the new Omicron variant of COVID-19. Evidence is emerging that it is much more transmissible than the current dominant Delta strain, although apparently less deadly. The Wall Street fear is that the latest variant will bring renewed government restrictions that could hinder economic growth.
This all comes as corporate earnings are swelling (also good news) but inflation still stays lofty, at a level not seen since the early 1980s (bad news).
Expectations for jobless claims were higher, with a Bloomberg survey of economists putting it at 220,000. Requests for jobless benefits have trended down since January as people return to work. Still, many Americans are quitting their jobs. And supply chain snarls continue to dog the US and world economies.