Initial U.S. jobless claims drop unexpectedly

The tally of newly laid-off people requesting jobless benefits fell last week, the government says, a sign that companies are cutting fewer workers. But the number of people continuing to receive unemployment benefits rose to 6.78 million—the largest total on records dating back to 1967 and the 17th straight record week. The figures for continuing claims lag behind initial claims by one week. The Labor Department says the number of initial claims for unemployment insurance dropped to a seasonally adjusted 623,000, from a revised figure of 636,000 in the previous week. It was below analysts’ estimates of 635,000. In a separate report, the government says demand for big-ticket manufactured goods soared by the largest amount in 16 months in April, the second increase in the past three months. New orders have risen in two of the past three months, which may be signaling that the deep recession in manufacturing is bottoming out. Stocks rose in early trading, in part because the two reports suggested the economy is stabilizing. The Dow Jones industrial average gained about 47 points.