Initial jobless claims rebounded from last week and decreased 16,000 to 278,000.  However, the 4 week moving average, which some consider to be a better gauge, increased 7,500 to 275,750 from last week.

The Leading Economic Indicators (LEI) came in better than expected as all segments save consumer expectations improved.  I should note the March read of an increase of 0.2 was revised to no change, so it remains to be seen if today’s number will stick.   This used to be a big deal with Alan Greenspan, but I’ve always felt it was backward-looking.

The LEI Index Segments:

• Average weekly hours, manufacturing.
• Average weekly initial claims for unemployment insurance.
• Manufacturers' new orders, consumer goods and materials.
• ISM® Index of New Orders.
• Manufacturers' new orders, nondefense capital goods excluding aircraft orders.
• Building permits, new private housing units.
• Stock prices, 500 common stocks.
• Leading Credit Index™.
• Interest rate spread, 10-year Treasury bonds less federal funds.
• Average consumer expectations for business conditions.

The market is on edge because Fed officials keep talking like tough guys and gals looking for a fight.  Forgot about being hawks, this crew is the Sharks and Jets.   But this is no love story, unless its love of a job that seems questionable to more and more people.  What is the role of the Fed and why hasn’t it accomplished its mission even after creating $4.0 trillion from thin air?

I like that the market is coming back from lows of the session, but the last hour will be interesting and a good test of just how much resolve there might be.