Jobless Claims Continue To Fall

The market was higher after the open, possible in reaction to a better jobless claims number, but it has since given up those gains and is slightly lower on the day. It could be that the market is a little tired after the multi-month rally, but that could be a good thing.

Next week is the big FOMC meeting, and if the market rallies into that meeting, it would surely be met with selling. But if people are trying to sell ahead of the meeting, then a pullback now might be healthier, and put the market in a better position to digest the FOMC news without too big of a setback.

Jobless claims this morning fell by more than expected, down 21,000 from last week. Moreover, continuing claims fell by 122,000 to their lowest level in nearly two years.

Among the sector ETFs, defensive funds like healthcare (+0.42%) and consumer staples (+0.28%) are bucking the weakness, while industrials (-0.31%) are lagging.

Asian markets were mixed overnight; the dollar is lower this morning, which is helping oil rise to $82.15 and gold prices bounce to $1332; the 10-year yield is lower to 2.67%; and the VIX is up +2% to 21.01.