The weekly jobless claims data has climbed above 450,000 for the first time in six years, deepening the worry on Wall Street today. Jobless claims are significant because if they continue to rise , they signal higher unemployment ahead and a worsening economic outlook. Higher unemployment tends to portend the potential for an endless cycle of lay-offs, lower consumption, leading to even more lay-offs. Jobless claims the remain above 400,000 are considered to be a sign of recession. However, Congress recently raised the benefit period, so a rise is to be expected, as recipients stay on benefits for longer periods. Combined with disappointing July retail sales data from WalMart and Target, the sentiment has turned from dawn to dusk fairly quickly today.Despite the gloomy data, the stock index futures haven't been nearly as negative as I might have been expected. Optimism still seems to prevail in yo-yo rises and falls. Time to roll with the punches.
