Jobless Claims Down Despite Huge Payroll Miss

Despite the ADP Payroll Report showing some 300,000 Jobs vanished in January, weekly jobless claims for the last week in January declined.

In the week ending January 29, the advance figure for seasonally adjusted initial claims was 238,000, a decrease of 23,000 from the previous week's revised level. The previous week's level was revised up by 1,000 from 260,000 to 261,000. The 4-week moving average was 255,000, an increase of 7,750 from the previous week's revised average. The previous week's average was revised up by 250 from 247,000 to 247,250.

The Federal Reserve will find no wiggle room in these numbers to avoid tightening monetary policy, which is why the Dow Jones responded by dropping nearly 1% out of the gate.

It is a measure of economic dysfunction in the US that a “good” jobless claims number counts as “bad” news to a Wall Street addicted to easy money.