Jobless Claims Tick Higher Following 5 Straight Weeks Of Declines: What You Need To Know

U.S. initial jobless claims jumped last week following five straight weeks of declines. 

What Happened: Jobless claims increased by 5,000 for the week ending Sept. 17 to 213,000 from a downwardly revised level of 208,000 in the prior week, according to data the Labor Department released on Thursday.

The number came in below average economist estimates of 217,000. 

The previous week's level of 208,000 was revised down by 5,000. The four-week moving average was 216,750, a decrease of 6,000 from the previous week's revised average. The previous week's average was revised down by 1,250 from 224,000 to 222,750.

Continuing claims dropped to 1.379 million in the week ended Sept. 10, a decrease of 22,000 from the previous week's revised level.

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Why It Matters: The SPDR S&P 500 SPY moved slightly higher following the release premarket Thursday. Jobless claims have been trending lower in recent weeks as employers continue filling open positions. Hiring is expected to slow as the Federal Reserve continues to hike interest rates.

The Fed on Wednesday raised its benchmark rate by 0.75% for the third straight time and indicated that it will continue to hike well above the current level. The 0.75% rate hike brings the target fed funds rate up to a new range between 3% and 3.25%, the highest levels seen since before the 2008 financial crisis.

In a press conference following the decision on rates, Fed Chair Jerome Powell reaffirmed the central bank's commitment to bringing inflation back down to its 2% goal. 

Price stability is essential, he said: "Without price stability, we will not achieve a sustained period of strong labor market conditions that benefit all."

"Restoring price stability is essential to set the stage for achieving maximum employment and stable prices over the longer run. We will keep at it until we're confident the job is done," Powell said.

SPY Price Action: The SPY was up 0.22% at $378.19 Thursday morning, according to Benzinga Pro.

Photo: Michael Hunter from Flickr.