The Bottom Line … Jobless claims are the number of people filing weekly to receive unemployment insurance due to not having a job.
That makes Jobless Claims an important leading indicator of the health of the economy. If jobless claims are growing, it signals a weakening economy.
Generally, the move is the inverse of the report. If initial jobless claims are down, the market will often rally upwards. If the initial jobless claims are up, the market may slump.