Employment data

The prevailing situation in the job market is one of the most important indicators investors in companies such as Honda (HMC) and Fiat Chrysler (FCAU) should track. There are several indicators that gauge the health of the US job market. One is the Initial Jobless Claims report.

The U.S. Department of Labor issues the Initial Jobless Claims report on a weekly basis. The report tracks employment data on how many people have filed for unemployment benefits in the previous week. It’s a measure of strength in the labor market.

Key Employment Data Investors Should Watch

Four-week moving average

The above chart shows the four-week moving average jobless claims. Since weekly data could have statistical noise, investors often prefer the four-week average for jobless claims. As you can see, jobless claims are on a downward trajectory and currently at a 15-year low.

Initial jobless claims for the week ending May 9 fell to 264,000. This represents a decline of 1,000 over the previous week. Jobless claims have been less than 300,000 for ten straight weeks. Jobless claims less than 300,000 are generally associated with a strong job market.

A stronger job market supports growth in the automobile industry. Higher vehicle sales also bode well for automobile component suppliers like Delphi Automotive (DLPH) and Johnson Controls (JCI).

There are several other indicators of the US job market that investors should track along with jobless claims. Non-farm payroll data tell investors how many new jobs were created during the month. In the next part, we’ll analyze the latest trend in US (VTI) non-farm payrolls for April.

Latest articles

WeWork is gearing up for an IPO. On Wednesday, the company made its IPO filing with the SEC public and expects to garner $3.5 billion from its IPO.

After FCC Chairman Ajit Pai recommended the approval of the T-Mobile–Sprint merger, Representative David Cicilline urged the FCC to allow public comment.

Cresco Labs (CRLBF) is set to report its Q2 earnings on August 21 after the market closes. The company's stock fell 5.3% yesterday.

Cannabis stocks mostly traded in positive territory today. Supreme Cannabis (FIRE) and Aurora Cannabis (ACB) rose about 9.5% and 5.5%, respectively.

NVIDIA (NVDA) stock soared 6% in today’s trading session as its Q2 earnings for fiscal 2020 beat estimates. However, its guidance missed estimates.

Nio Inc. (NIO) has disrupted the automotive space since 2014 but only made waves in the market since its IPO. Investors have suffered numerous setbacks.