Stocks rose in overnight trading but immediately gave back those gains in pre-market trading after the initial jobless claims came in higher than expected. Treasury yields once again fell in overnight trading and extended their drop into early trading while stocks were down slightly in early trading.
Initial jobless claims missed expectations by rising 1.416 million last week. The four-week average for jobless claims continues to fall and is down to 1.360 million. Continuing claims fell by more than a million, as employees are headed back to work, to 16.197 million. Continuing claims does not include all forms of unemployment insurance. The total number of Americans receiving unemployment benefits is 31.802 million.
The U.S. Leading Index rose +2.0% in June, showing the economy slowed slightly from May but is continuing to expand.
Stocks could not hold on to their early morning gains as sellers took over causing stock prices to close in the red. Treasury yields also fell, with 30-year Treasury yields flirting with a key support level that if broken, will likely lead to a retest of their all-time lows or even to new all-time lows.