The numbers: The number of Americans applying for unemployment benefits each week moved higher in mid-October, affected by Hurricane Michael. New claims rose by 5,000 to 215,000 in the seven days ended Oct. 20. Economists polled by MarketWatch had forecast a 210,000 reading.
What happened: Claims were higher in Florida and Georgia in the latest week, two states hit hard by Hurricane Michael. Effects from the hurricane are expected to linger in the data until the end of the month.
The monthly average of claims, was unchanged at 211,750, the government said. Continuing claims fell by 5,000 to 1.64 million in the week that ended Oct. 13. That’s the lowest level since August 1973.
Big picture: Looking through the hurricane, new jobless claims have been under 220,000 since early July, a remarkable stretch last duplicated almost a half-century ago. There is no reason for layoffs to increase anytime soon. The Beige Book survey released Wednesday showed strong demand for labor across the country. This will keep the Federal Reserve raising short-term interest rates.
Market reaction: Stocks were poised for a mild rebound after the steep drop on Wednesday. The Dow Jones Industrial Average
DJIA, +0.41%
was set to open higher.
Source : MTV
