PREVIEW: Initial And Continuing Claims Due 8:30am (URBN, ANF, BBY)

Initial claims fell from 394,000 to 388,000 in last Thursday's report for the week ending March 26th. The consensus today is anticipating another slight decline to 385,000. Continuing claims also showed a decline in last Thursday's report, falling from 3.675 million to 3.714 million for the week ending March 19th. The Street is expecting an additional drop to 3.7 million this time around. In an economy driven by consumer spending, a positive outlook on the labor market is a virtual necessity for sustained economic growth. If the numbers can meet or exceed estimates, look to names in the retail sector to benefit as confidence will spur spending. Urban Outfitters URBN and Abercrombie & Fitch ANF were both strong in Wednesday's trading session and could continue their run today if positive claims data comes in. Best Buy BBY could be another good choice as shares have recently bounced off of their 52-week low ($28.09). A positive employment outlook emanating from today's numbers may push the stock back above $30 and through its 20-day moving average on the six month daily chart.