Economists forecasted jobless claims to decrease to 220,000. The figure was a slight miss as jobless claims reported a seasonally adjusted 228,000 for the week ending May 4th. The number of people still receiving benefits after the first week increased 13,000 to 1.68 million for the week ending April 27th. April added 263,000 jobs with the unemployment rate dropping to 3.6%.
The number of Americans filing for state unemployment benefits decreased 2,000 to a seasonally adjusted 228,000 for the week ending May 4th. Jobless claims decreasing less than expected can be some indication that the labor market is slowing up. The more important figure to watch is the four-week moving average of initial jobless claims which increased 7,750 to 220,250. The four-week moving average decreases the intra-week volatility that can be caused by holidays and school spring breaks.
The number of people receiving benefits after an initial week of aid increased 13,000 to 1.68 million for the week ending April 27th. The four-week moving average fell 8,000 to 1.67 million.
In April 263,000 jobs were created and the unemployment rate dropped to a near 50 year low of 3.6% (reported last week).
Gold and Dollar Price Action
The equity markets have had a shaky week with the Dow Jones Industrial Average dropping nearly 800 points. Gold has been relatively calm during this week. Some would expect gold to be up significantly more given the signs of cracks appearing in the equity markets. Jobs data had little effect on Gold, the Dollar and Equity markets as jobs data was only a slight miss. Keep an eye on the Fed as the Fed should be one of the biggest catalysts for gold to breakout.