PREVIEW: Initial and Continuing Claims to be Reported at 8:30am 4/14/11 (WMT, JWN)

The U.S. Department of Labor will release its report of initial and continuing jobless claims for the week ending April 9th and continuing jobless claims for the week ending April 2nd today at 8:30am EST. Initial and Continuing Jobless Claims Summary: Initial Claims for w/e April 9: Expected 3.700M, Prior 3.723M Expected market impact: Low to moderate Initial claims fell from 392,000 to 382,000 in last Thursday's report for the week ending April 2nd. The consensus today is another slight decrease in claims to 380,000. Continuing claims also showed a decline in last Thursday's report, falling from 3.732 million to 3.723 million for the week ending March 26th. The Street is expecting an additional drop to 3.7 million this time around. In an economy driven by consumer spending, a positive outlook regarding the labor market is a virtual necessity for sustained economic growth. If numbers can meet or exceed estimates, look for names in the retail sector to benefit as heightened confidence spurs spending. Shares of Wal-Mart Stores WMT recently broke above their 20-, 50-, and 200-day moving averages on a six month daily chart. If the stock can get past the $54 resistance point, a move higher could be in the cards. Nordstrom JWN may be another good choice, as the stock was solid in yesterday's session, finishing 1.4% off of its low of the day. The equity is currently sitting very close to its 52-week high of $57.28. Good news on the employment front could provide the necessary spark to move this name above that level.