Dow Jones Rises on Soft Layoffs Data as Retail Stocks Rally Ahead of Black Friday
The Dow Jones Industrial Average (DJIA) climbed higher ahead of Thanksgiving as initial jobless claims dropped to a seven-month low, signaling resilience in the labor market. The Department of Labor reported a decline of 6,000 claims to 216,000 for the week ended November 22, beating estimates of 225,000. Continuing claims edged up slightly to 1.96 million, remaining below expectations.
Market participants interpreted the data as evidence of a cautious labor market—employers are neither aggressively hiring nor firing. "Jobless claims remain low while continuing claims stay high," noted Kathy Jones of Schwab Center for Financial Research. "The low hiring, low firing dynamic persists."
Retail stocks gained momentum in anticipation of Black Friday sales, while traders priced in an 84.9% probability of a 25-basis-point rate cut at the December FOMC meeting, per CME FedWatch data.
