Initial Jobless Claims Report Shows That 1.43 Million Americans Filed For Unemployment Benefits In A Week
Initial Jobless Claims were 1.43 million, down from 1.48 million in the previous week. Analysts expected Initial Jobless Claims of 1.35 million.
Continuing Jobless Claims were mostly flat at 19.3 million. The previous reading of 19.5 million was revised to 19.23 million. The analyst consensus called for Continuing Jobless Claims of 19 million.
Both reports were a bit worse than expected but S&P 500 futures have increased their gains during the premarket trading session as other employment reports have easily beaten expectations.
Unemployment Rate Declines To 11.1%
In June, Unemployment Rate was 11.1% compared to analyst consensus of 12.3%. In May, Unemployment Rate was 13.3%, so the situation has materially improved.
Non Farm Payrolls report showed that the economy added 4.8 million jobs in June. Before the release, analysts expected that Non Farm Payrolls will total 3 million.
The Non Farm Payrolls report is much better than expected and is set to provide additional support to the market. Today, stocks have a very good chance to build upside momentum on optimism about the recovery.
WTI Oil Continues Its Attempts To Settle Above The $40 Level
The recent EIA Weekly Petroleum Status Report showed that U.S. crude oil inventories declined by 7.2 million barrels. Initially, this report failed to provide additional support to the oil market, and WTI oil continued to trade below the $40 level.
However, the optimism about the global economic recovery is increasing, and oil is once again trying to get above $40 and gain more upside momentum.
Major oil stocks like Exxon Mobil, Chevron, BP, Royal Dutch Shell have been under pressure for several weeks as investors started to question long-term perspectives of big oil after BP and Shell signaled that they will make huge writedowns due to changes in outlook for oil and gas.
In case oil manages to get more momentum above $40, traders will likely focus on near-term recovery and provide support to oil-related stocks, pushing S&P 500 to higher levels.
For a look at all of today’s economic events, check out our economic calendar.
This article was originally posted on FX Empire
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