1. U.S. jobless claims dropped to lowest in 50 years
The number of Americans filing jobless claims fell to the lowest in close to 50 years last week. Based on historical trends, LPL Financial analysts argue this could signal a recession is further off than many expect.
The big picture: Jobless claims are a leading indicator, LPL Research Chief Investment Strategist John Lynch says. Historically, a 75,000–100,000 increase in claims over a 26-week period has been associated with a recession.
- “The U.S. labor market remains strong and will help buoy consumer health and output growth this year,” Lynch said.
Yes, but: The data excludes 380,000 workers who went without pay because of the political impasse over President Trump’s plan to build a wall along the Mexican border.