From our colleagues at our sister company, Argent Trust:
Announced this morning, Initial Jobless Claims were 228,000 for the week ending April 1st, higher than expected and the previous week was revised markedly higher to 246,000. Continuing Claims were 1,823,000 for the week ending March 25th, also higher than the previous figure and a strong revision higher for the previous week. Meanwhile, announced yesterday the employment change from ADP’s report was 145,000 for March, less than expected and a decline from last month’s revised figure.
Overall, initial and continuing claims both show increases in the current week and higher revisions to the previous week, denoting a whiff of weakness. The slowing was also seen earlier this week in both the ADP report’s less than expected result and in the softening of the JOLT’s data. All eyes will be on tomorrow’s payroll’s report to see if labor data points deteriorate, and a higher unemployment rate materializes. With inflationary measures still elevated and above the Federal Reserve’s target, policy is likely to be restrictive until the labor market shows signs of strain.
In all, the yield on the 10-year US treasury ticks slightly higher following the report of initial claims and equity futures are lower as we head into the market open.
This material is intended to be for informational purposes only and is intended for current or prospective clients of Argent Trust Company. This information is obtained from sources believed to be reliable, and its accuracy and completeness are not guaranteed. Information does not constitute a recommendation of any investment strategy, is not intended as investment advice, and does not take into account all the circumstances of each investor. Forward-looking assumptions are Argent Trust Company’s current estimates or expectations of future events or future results based on proprietary research and should not be construed as an estimate or promise of results that a portfolio may achieve. Actual results could differ materially from the results indicated by this information. Investments can go down as well as up. Past performance is not a reliable indicator of future results.