Initial Jobless Claims Decline To 1.31 Million
Initial Jobless Claims declined from 1.41 million to 1.31 million. Analysts projected that Initial Jobless Claims would total 13.75 million.
Continuing Jobless Claims report was much better than expected as Continuing Jobless Claims declined to 18.1 million compared to analyst estimates of 18.95 million.
The decrease in Continuing Jobless Claims supports the thesis that the U.S. economy is rebounding faster than previously expected.
Not surprisingly, S&P 500 futures are gaining ground in the premarket trading session after the release of these reports, and the market looks ready to continue the upside trend.
Fed’s Bullard Believes That Unemployment Rate Will Materially Decline By The End Of The Year
Despite the recent surge in the number of new coronavirus cases in the U.S., St. Louis Fed President James Bullard thinks that Unemployment Rate will decline to 7 – 8% by the end of this year.
This optimism is based on the current momentum since Unemployment Rate has declined from 14.7% in April to 11.1% in June. Back in February, when the economy did not suffer from the coronavirus pandemic, Unemployment Rate was just 3.5%.
The road to such levels may be a long one, but a return to Unemployment Rate of 7 – 8% will be a major move forward for the U.S. economy.
Such projections from Fed officials provide additional support to stocks which continue to ignore worrisome news on the coronavirus front.
Oil Continues To Trade In a Very Tight Range Near The $40 Level
Oil stays above the $40 level for the sixth session in a row but fails to get above the $41 level. Such a tight range is highly unusual for a volatile commodity like oil.
Meanwhile, major oil stocks like Exxon Mobil, Chevron or BP are slowly trending down in absence of additional upside catalysts.
In my opinion, the quiet trading in oil cannot last much longer so oil will be ready to break out of the coming range in the upcoming trading sessions, with the corresponding impact on oil-related stocks.
For a look at all of today’s economic events, check out our economic calendar.