US jobless claims lower than forecast, futures rise

Thursday, July 8, 2010

The Dow and S&P 500 rallied Wednesday after a modestly positive jobless claims report fueled investor's confidence in the future.
Image: The Web President.

The Dow Jones Industrial Average rose back up to 10,018.28 Wednesday, rising 275 points after the United States Department of Labor said initial jobless claims were lower than expected.

The report, which showed a modest dip in initial jobless claims, was better than what a poll of economists had predicted. The economists, who were polled by Thompson Reuters, had predicted 465,000 initial jobless claims in the month ending July 3; the number the Labor Department released was 454,000.

The four-week average of initial claims also fell 1,250 to 466,000, the Labor Department said on its website.

Also, after the International Monetary Fund raised its 2010 world growth estimate to 4.6% from 4.2%, international markets rallied. The S&P 500 rallied along with the Dow, up 3.13% to 1,060.27. However, the Nasdaq stayed flat at 2,159.47.