Jim Cramer told TheStreet Thursday that chances of a V-shaped economic recovery are depleting as Wall Street awaits the July jobs report Friday amid ongoing stimulus talks and growing tension between the U.S. and China.
In premarket trading Friday, Dow futures pointed down more than 160 points, pointing to growing investor anxiety.
The Labor Department said Thursday that 1.186 million Americans filed first-time jobless claims for the week ended August 1, down from a revised 1.434 million claims the week earlier, as U.S. employers stepped back up their efforts to reopen and rehire, despite renewed virus flare-ups in various states and cities.
Economists polled by FactSet had been expecting 1.3 million claims up to last Saturday.
Initial claims for jobless benefits have held roughly steady at more than 1.4 million a week since late June, according to the Labor Department. This is well below the 6.5 million claims recorded in the first dark days of the pandemic but still well above the highest on the record before this year, which was 695,000 in 1982.
Continuing claims, which are the number of people not just filing but staying on unemployment benefits, came in at 16.107 million for the week ended July 25. The continuing claims numbers are reported with a one-week lag, but are considered a better gauge of the labor market.
Through July 18, 49 states had reported 13.0 million claims for Pandemic Unemployment Assistance benefits, and 48 states had reported 1.1 million Pandemic Emergency Unemployment Compensation benefit claims.
The largest increases in initial claims for the week ended July 25 were in Virginia (+5,020), Nevada (+2,842), Missouri (+2,606), Indiana (+2,218), and New Jersey (+2,141), while the largest decreases were in California (-44,941), Georgia (-37,329), Florida (-17,514), Louisiana (-13,568), and Texas (-11,104).
As for the Friday jobs report, economists anticipate around 1.48 million jobs added in July. according to the Dow Jones. Mish Talk observed that the result is likely to be boosted by seasonal adjustments in education and auto manufacturing.
Heading into the report, Jim Cramer said investors will be looking closely to gauge the direction of the economic recovery. What to watch? Cramer said to closely analyze which sectors are adding and subtracting jobs in the month.
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