This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Jobless Claims Bounce Back Up

NEW YORK ( TheStreet) -- More Americans filed for unemployment benefits in the first week of the year than economists expected.

The Labor Department's weekly read on initial jobless claims rose by 24,000 to 399,000. The latest report was a disappointment given that claims had been coming in more comfortably below the 400,000 mark in recent weeks. According to a poll by Thomson Reuters, analysts were looking for 375,000. The prior week's figure was upwardly revised to 375,000 from 372,000.

Hope was building that the recovery in the U.S. jobs market might pick up pace and that claims would continue to decline.

"We are pretty confident that the underlying trend in claims is now declining again, as fears of a consumer meltdown have faded since the fall, but anything can happen in any given week," wrote Ian Sheperdson, chief U.S. economist at High Frequency Economics, before Thursday's report. "By the end of the first quarter, though, we expect to see the trend established below 350,000."

The recent read in claims opens up the question of whether improvements seen recently are due to seasonal factors, such as temporary improvement in the jobs market around the holiday season.

However, Paul Dales, U.S. economist with Capital Economics said that one shouldn't read too much into the rebound in claims. "There are always problems in seasonally adjusting the weekly data around the turn of the year," he said. "As it stands at the moment, the trend in claims remains downwards."

"We'll dismiss claims as part of the seasonal volatility, but do ponder if we're seeing layoffs post-holiday hiring," wrote David Ader, strategist with CRT Capital, in response to the government's report.

-- Written by Chao Deng in New York.

>To contact the writer of this article, click here: Chao Deng.

>To follow the writer on Twitter, go to: @chao_deng

>To submit a news tip, send an email to:

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
AAPL $93.64 0.00%
FB $118.57 0.00%
GOOG $698.21 0.00%
TSLA $241.80 0.00%
YHOO $36.53 0.00%


Chart of I:DJI
DOW 17,891.16 +117.52 0.66%
S&P 500 2,081.43 +16.13 0.78%
NASDAQ 4,817.5940 +42.2360 0.88%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs