Initial Jobless Claims vs. S&P 500 Chart

This chart shows monthly Initial Jobless Claims per 1,000 citizens, and its 3 month moving average, in relation to the S&P 500.  Note that Initial Jobless Claims are correlated to recessions.   Since Initial Jobless Claims data are usually published before the NBER officially announces the end of a recession, it may be a useful indicator in predicting an upturn in the economy.  New Jobs data releases are highly-anticipated, and tend to move the stock market quickly.  So, Initial Jobless Claims data may be useful in forecasting business conditions going forward.  Initial Jobless Claims tends to be a bit of a lagging indicator, but may be useful as confirmation in your investment decision-making.

** The Initial Jobless Claims Gauge on the Dashboard shows it current value versus its 3-month moving average.