6 Week Low for Unemployment Claims

WSJ/WASHINGTON -- The number of U.S. workers filing new claims for unemployment benefits posted a surprising drop last week to a six-week low, signaling some improvement in labor-market conditions ahead of Friday's employment report for May (DOL report here).

The four-week average of new claims, which economists use to gauge underlying job trends, fell for a second-straight week, by 2,750 to 368,500. Despite the recent improvement, that average remains well above levels seen in 2007 and at the start of this year.

MP: The downward trend over the last two months looks hopeful, and the market today seemed to like it (+214 point jump in the DJIA).