Well, it looks like we’re about to find out how equity markets react “when” weekly claims for unemployment insurance reach 500,000, the question of “if” no longer being relevant. According to this AP report, so far, not so good, that is, if you’re long.
Stock futures drop as jobless claims rise
Stock futures fall after claims for unemployment benefits rise unexpectedly
Stock futures are falling after a disappointing report on weekly claims for jobless benefits.
The Labor Department says initial claims for unemployment benefits jumped by 12,000 to 500,000 last week. Economists were expecting a small drop in claims. That renews worries about the pace of a recovery.
The jump in the number of people filing for unemployment benefits helped wipe out a sharp rise in futures Thursday that occurred following news that Intel Corp. is acquiring McAfee Inc.
It should be an interesting day… Leading economic indicators will be released in about an hour and more signs of slowing growth (if not an outright contraction) in manufacturing might be seen in the Philadelphia Fed survey.
