NEW YORK ( TheStreet) -- Stock markets cheered a 225,000 drop in continuing unemployment claims this week. Those cheers are misplaced.
When I wrote about unemployment claims in January, the conclusion was that WIUC (Weekly Initial Unemployment Claims) were on the trajectory expected for a solid recovery when compared to past economic cycles. That conclusion is no longer supported by the more recent data. The title of the review in January was Weekly Unemployment Claims Are Behaving Well. Unfortunately, the current article has exactly the opposite theme. This title might well have been Unemployment Claims Are Not Behaving Well.
The following graph updates the WIUC history first presented in the January article.