Unemployed on Main Street is good news on Wall Street

The market indices were significantly higher today because investors were apparently cheering the fact that "The number of newly laid-off workers filing first-time claims for jobless benefits rose last week, the government said, though the increase was mostly due to seasonal distortions.The number of people remaining on the jobless benefit rolls, meanwhile, fell to 6.2 million from 6.25 million, the lowest level since mid-April.The Labor Department said that new claims for unemployment insurance increased by 25,000 to a seasonally adjusted 584,000, above analysts’ estimates of 570,000.A department analyst said the increase comes after claims were artificially depressed earlier this month by the timing of temporary auto factory shutdowns, which happened earlier this year than in most years. Still, this week’s total is below the 617,000 initial claims reported in late June before the seasonal distortions began. It reflects a trend that economists say indicates a slowing pace of layoffs.The four-week average of claims, which smoothes out fluctuations, fell to 559,000, its lowest level since late January..."

The market rise is still baffling to serious thinkers, as there is no evidence of significant hiring in any of the high value industries, and even the restaurant industry is struggling. As to where people will find jobs does not seem to concern the market. What's more- at least some of the people who fell off the benefit rolls might have exhausted their benefits, rather than finding a job. Finance, again, wagging the tail...