On 13 November 2008, Labour Department of USA released a report that jobless claims for last week had an increased by 32,000.The total season adjusted jobless claims is 516,000 which is very near to the jobless figure 7 years ago which was 517,000. This figure were being said to be unexpectedly high and above what analyst had predicted.
Amidst this very negative piece of news which reflected the truth about the economy which is really stuttering and slowing down, investors were not affected very much as Dow Jones Industrial Average Index, DJI opened higher in early trade on 13 November 2008. The very large fluctuating movement of the market does suggest that investors are not really affected by the job data and many are buying on bargain hunting. It is however after a three day consecutive free-fall, DJI was seen green today after a couple of hours of trade. DJI is currently enjoying a 86.97 points or 1 percent gain in light of this government released data of jobless claim.
Jobless claims however is a very critical piece of news that would definitely affect consumer spending which suggest that severe consumer spending pullback may be a prolonged effect is people taking turns to lose their jobs.
Currently, market is really lacking direction. Although, job data did not fall into the lime light at this moment, it may be a possibility that investors may tend to sell off later part of this trading session in lacking of positive direction.
The above are of personal opinion and not at all an inducement to trade.