Jobless claims nearing high from last November

Applications for U.S. unemployment insurance rose for a second week and held near the highest level since November, indicating continued moderation in the labor market.

Initial unemployment claims increased by 14,000 to 262,000 in the week ended Saturday, Labor Department data showed Thursday. The median estimate in a Bloomberg survey of economists called for 265,000 applications.

Continuing claims for state benefits ticked up to 1.43 million in the week ended July 30, the most since early April.

Jobless claims have been rising as more companies, particularly in the tech sector, announce layoffs and freeze hiring due to economic uncertainty. Demand for workers may drop as the Federal Reserve raises interest rates, but so far, employers are largely trying to hold onto the ones they have amid widespread labor shortages.

The jobless claims data can be choppy week to week, and some states in particular, like Massachusetts, have been volatile in recent readings. The prior week’s reading was also notably revised lower. The four-week moving average, which smooths out such swings, rose to 252,000. It’s climbed in all but one week since early April.

Mortgage rates climb back to above 5%

Average long-term U.S. mortgage rates soared this week in a continued volatile market as the key 30-year loan rate jumped back over 5%.

Mortgage buyer Freddie Mac reports that the 30-year rate rose to 5.22% from 4.99% last week. By contrast, the rate stood at 2.87% a year ago.

The average rate on 15year, fixed-rate mortgages, popular among those looking to refinance their homes, increased to 4.59% from 4.26%.

Last week the 30-year rate fell below 5% for the first time in four months, days after the Federal Reserve raised its benchmark interest rate by a hefty three-quarters of a point in its most aggressive drive in over three decades to tame record-high inflation. It was the central bank’s second such increase in less than two months.

Experts see some stability returning to the housing market as the drop in homebuyer demand moderates although supply remains fairly tight.

Markets mixed as inflation signs cool

An afternoon pullback left stock indexes on Wall Street with a mixed finish Thursday, erasing most of their gains from a morning rally over new signs of cooling inflation.

The S&P 500 slipped 2.97 points to 4,207.27 Thursday, but it’s still on pace for a fourth consecutive weekly gain.

The Nasdaq fell 74.89 points to 12,779.91, and the Dow rose 27.16 points to 33,336.67. The Russell 2000 index of smaller companies rose 6.01 points, or 0.3%, to 1,975.26. The three indexes are also on pace for a weekly gain.

Technology and health care stocks were among the biggest weights on the S&P 500, keeping gains by energy companies, banks and other sectors in check.

The Walt Disney Co. jumped 4.7% after the entertainment company reported stronger profits for its latest quarter than analysts expected. It cited strong performance at its U.S. theme parks and announced price increases for its streaming services.

Treasury yields mostly rose Thursday, after paring earlier losses. The 10-year yield rose to 2.89% from 2.79% late Wednesday, a big move.

It’s still below the twoyear yield, which sits at 3.21%. That’s a relatively unusual occurrence that some investors see as a fairly reliable signal of a pending recession, though the gap between the two has narrowed somewhat.