Jobless claims remain steady and low, consistent with significant if not substantial strength in the labor market. Initial claims edged 1,000 lower in the February 11 week to a no surprise 194,000 level, now under 200,000 for the last five weeks straight. The four-week average is steady just under 190,000, little changed at 189,500.

Continuing claims are also steady, up a marginal 16,000 in lagging data for the February 4 week at 1.673 million. The unemployment rate for insured workers is unchanged at a very low 1.2 percent.

Strength in the labor market will give Federal Reserve policy makers the cover they need to continue to concentrate on bringing inflation lower: this means higher interest rates!

US data, as they have nearly all year, continue to run appreciably above economist forecasts, at 26 on Econoday's Consensus Divergence Index in yet another result that gives the Fed the leeway to raise rates further.

Jobless claims for the February 16 week are expected to come in at 200,000 versus 196,000 in the prior week.

New unemployment claims are compiled weekly to show the number of individuals who filed for unemployment insurance for the first time. An increasing (decreasing) trend suggests a deteriorating (improving) labor market. The four-week moving average of new claims smooths out weekly volatility.

Jobless claims are an easy way to gauge the strength of the job market. The fewer people filing for unemployment benefits, the more have jobs, and that tells investors a great deal about the economy. Nearly every job comes with an income that gives a household spending power. Spending greases the wheels of the economy and keeps it growing, so a stronger job market generates a healthier economy.

There's a downside to it, though. Unemployment claims, and therefore the number of job seekers, can fall to such a low level that businesses have a tough time finding new workers. They might have to pay overtime wages to current staff, use higher wages to lure people from other jobs, and in general spend more on labor costs because of a shortage of workers. This leads to wage inflation, which is bad news for the stock and bond markets. Federal Reserve officials are always on the look-out for inflationary pressures.

By tracking the number of jobless claims, investors can gain a sense of how tight, or how loose, the job market is. If wage inflation looks threatening, it's a good bet that interest rates will rise, bond and stock prices will fall, and the only investors in a good mood will be the ones who tracked jobless claims and adjusted their portfolios to anticipate these events.

Just remember, the lower the number of unemployment claims, the stronger the job market, and vice versa.