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

Apple stock fell 4.6% as the US-China trade war intensified today. China warned of tariffs on more US goods, followed by Trump's tweeted response.

In response to new tariffs from China and President Trump's tweets, the market tanked to session lows on Friday. The DJIA nosedived more than 600 points.

Coverage on Cresco Labs has increased from seven analysts in July to nine in August. Six analysts favor a “strong buy,” and three recommend a “buy.”

AMD stock hit a new 13-year high after the EPYC Rome server CPU launched. How can AMD outperform Intel CPUs at such low prices and still profit?

VMware (VMW) lost about 9% in early hours trading today. VMW released its Q2 of fiscal 2020 results on August 22 after the market closed.

Since Netflix posted its Q2 results, its stock has fallen 18%. Could the streaming giant lose its disruptor position as new players enter the market?