US jobless claims drop to 5.5 year low

From Reuters:

"The number of Americans filing new claims for unemployment benefits fell unexpectedly last week, touching a 5-1/2 year low, suggesting a steadily improving labor market.

Initial claims for state unemployment benefits dropped 19,000 to a seasonally adjusted 326,000, the lowest level since January 2008, the Labor Department said on Thursday."
A volatile series but promising news nonetheless. More important will be the July employment report on Friday, which economists expect to show an unemployment rate dropping a notch to 7.5%.
Reuters again:
The government's closely monitored report is expected to show nonfarm payrolls increased 184,000 last month after rising 195,000 in June, according to a Reuters survey of economists."
Dow Futures are up by more than 100 points in response to the news while investors try to second-guess ongoing stimulus plans.

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