The number of Americans filing new claims for unemployment benefits rose by 29,000 to 219,000 in the week that ended October 1st, jumping from the five-month low hit in the prior week and sharply above expectations of 203,000, suggesting some loosening in labor market conditions. On a non-seasonally adjusted basis, initial claims rose by 13,254 to 167,083, with notable increases seen in Puerto Rico (+3,914) and Missouri (+3,749). The 4-week moving average, which removes week-to-week volatility, rose slightly by 250 individuals from the prior week to 206,500. source: U.S. Department of Labor
The US labor market is starting to show some signs of weakness, and this should not be shocking. It might be shocking for politicians of course. They are not considering it as a lagging indicator, this is aside from denying a recession. Eyes now are headed toward the NFP report tomorrow, which might come up with a negative surprise. If so, this might trigger another leg higher in equities, as this would fuel the estimates of a pause by the Federal Reserve soon.