New jobless claims rise unexpectedly to 627K

New jobless claims rise unexpectedly to 627K
New jobless claims jump unexpectedly to 627,000; continuing claims rise to 6.74 million

WASHINGTON (AP) -- The number of Americans filing new jobless claims jumped unexpectedly last week, and the total unemployment benefit rolls rose to more than 6.7 million.
The Labor Department data released Thursday show jobs remain scarce even as the economy shows some signs of recovering from the longest recession since World War II.

The department said initial claims for jobless benefits rose last week by 15,000 to a seasonally adjusted 627,000. Economists expected a drop to 600,000, according to Thomson Reuters.
Several states reported more claims than expected from teachers, cafeteria workers and other school employees, a department analyst said.
The number of people continuing to receive unemployment insurance rose by 29,000 to 6.74 million, slightly above analysts' estimates of 6.7 million.
The four-week average of claims, which smooths out fluctuations, was largely unchanged, at 616,750.
Economists expect the number of initial unemployment insurance claims, which reflects the level of layoffs, to slowly decline over the coming months as the economy bottoms out.

Stocks open lower after rise in jobless claims
Stocks open lower after surprise increase in last week's jobless claims

NEW YORK (AP) -- An unexpected rise in jobless claims is causing investors to sell again.
The government says new jobless claims rose by 15,000 to 627,000 last week. The market had been expecting a decline. Unemployment affects many drivers of the economy -- most importantly, consumer spending.

Uncertainty about when the economy will turn around, and how fast it will grow when it finally does, have weighed on the market this month. The Dow Jones industrial average remains up 26.8 percent from its 12-year low hit on March 9, but is down about 5.7 percent from a June 12 high.

In the first few minutes of trading, the Dow is down 19 to 8,280. The Standard & Poor's 500 index is down 2 to 898, while the Nasdaq composite index is down 8 to 1,783.

THIS IS A BREAKING NEWS UPDATE. Check back soon for further information. AP's earlier story is below.
http://finance.yahoo.com/news/Stocks-open-lower-after-rise-apf-15617326.html?x=1&sec=topStories&pos=1&asset=&ccode=

US stock futures soar on fewer job losses

US stock futures soar on fewer job losses
Wall Street heads to higher open as report says employers cut fewer-than-expected jobs in May

NEW YORK (AP) -- U.S. stock futures surged Friday as investors cheered a government report that said employers cut fewer jobs than expected last month.

The Labor Department said 345,000 jobs were lost in May, significantly less than the half-million job losses economists had been expecting and the fewest job losses since September.

However, the unemployment rate surged to a slightly higher-than-expected 9.4 percent from 8.9 percent in April, proving that companies are still reluctant to hire back laid off workers.
But investors looked beyond the higher unemployment rate and instead took the slower pace of layoffs for a fourth month in a row as a sign that unemployment is stabilizing.

Unemployment has been one of the most closely watched gauges of the economy's health throughout the recession. Rising job losses affect vast areas of the economy, including consumer spending, retail sales and the housing market.

Ahead of the market's open, Dow Jones industrial average futures rose 113, or 1.3 percent, to 8,843, after being up about 33 points prior to the report. Standard & Poor's 500 index futures jumped 13.70, or 1.5 percent, to 954.20, while Nasdaq 100 index futures gained 14.25, or 1.0 percent, to 1,507.25.