Just out this morning, the BLS reported that for the week ending May 30, Initial Jobless Claims added 1.877M new applicants against an expectation of 1.83M. Continuing Claims also disconcertingly rose to 21.48M for the week ending May 23rd after totaling 21M the week before. Analysts were looking for that number to fall to 20M as it is perceived that more people are returning to work. Yesterday’s encouraging ADP report did not carry over into this morning’s announcement. The Trade Deficit was also announced this morning at negative $49.4B for April, about what was expected.
Overnight, equity markets in Europe were buoyed by the news that the European Central Bank is preparing another $670B worth of stimulus along with announcements to extend current bond-buying programs.
Treasury prices are little changed so far after yesterday’s sell-off. The Ten-Year is still yielding around 75 basis points; about where it ended up on Wednesday. Domestic equities may open a bit softer after the rallies seen earlier this week. Crude oil is little changed at just below $37 while gold has rallied a bit to $1,708. The week’s big data point comes tomorrow with the monthly Unemployment Report from the BLS.