U.S. Jobless claims drop to 19-month low
The Dow Jones was trading lower on Thursday, despite data showing that initial jobless claims fell to their lowest levels since the beginning of the pandemic.
Data from the Labor Department reported that Jobless claims in the U.S. fell 6,000 to 290,000 for the week that ended October 16th.
|💡 How is the relationship between jobless claims and NFP figures?|
Two popular indicators that investors frequently watch to measure the temperature of the labor market in the US are the jobless claims and the non-farm payrolls. Historically, the market has been focusing more on the monthly NFP prints, but the recent waves of selloffs due to the Covid-19 crisis has raised investors’ interest on the weekly jobless claims figures as the number of Americans filing for unemployment benefits surged
This was the lowest level for claims since March 2020, during the peak of the COVID-19 pandemic.
This is now the second consecutive week claims have fallen below 300,000 and comes despite recent Non-Farm payrolls falling short of expectations.
Despite the data, the Dow Jones was trading 0.31% lower as of writing.
Trump backed SPAC rallies 300%
A SPAC which has been linked to Donald Trump, was up by as much as 300% in today’s session, as it was announced that it will help launch Trump’s social media return.
News reports claimed that Digital World Acquisition Corp would merge with the former president’s Trump Media & Technology Group, to launch a social media app, “TRUTH”.
In a statement referring to the launch, Trump stated that, “We live in a world where the Taliban has a huge presence on Twitter, yet your favourite American President has been silenced. This is unacceptable”.
|💡 Why is Trump launching a new social network?|
Trump’s use of Twitter redefined politics, letting him sidestep mainstream media to try to take hold of the political narrative. But Twitter permanently banned Trump on Jan. 8. Facebook later stated the would ban the former president at least until 2023. And YouTube has said it would lift Trump’s suspension from its platform when the “risk of violence has decreased.”
Trump went on to add that, “I am excited to send out my first TRUTH on TRUTH Social very soon. TMTG was founded with a mission to give a voice to all. I’m excited to soon begin sharing my thoughts on TRUTH Social and to fight back against Big Tech”.
DWAC, which is listed on the NASDAQ, was up by 349% as of writing.
Tesla stock higher, after strong Q3 earnings
Shares in Elon Musk led Tesla were trading higher on Thursday, a day after the company reported better than expected Q3 earnings.
In its earnings call on Wednesday, Tesla reported that it had its best quarter on record, as the company also relocated its headquarters to Texas.
Tesla reported that it netted income of $1.62 billion in the quarter, which is the second time quarterly revenue has surpassed $1 billion. This comes after net income was $331 million during the same period last year.
In addition to this, the company announced that revenue came in at $13.76 billion vs $13.63 billion expected.
Earnings per share also beat expectations and came in at $1.86 vs $1.59. As of writing, $TSLA was trading 3.30% higher.
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