Initial jobless claims are up 5,000 to 217,000 in the week ending October 28 after a small upward revision to 212,000 in the prior week. The level is somewhat above the consensus of 213,000 in the Econoday survey of forecasters but not materially different. The four-week moving average is up 2,000 to 210,000 in the week. Claims are running slightly higher than in the last three weeks of September and first weeks of October. Nonetheless, the level remains low and consistent with a tight labor market and low numbers of job cuts.

Insured jobless claims rose 35,000 to 1.818 million in the October 21 week after 1.783 in the prior week. Approved claims received a boost from a mismatch in seasonal adjustment factors. The unadjusted level is up 6,827 to 1.580 million in the October 21 week. The seasonally adjusted four-week moving average is up 36,500 to 1.758 million in the week.

The insured unemployment rate is unchanged at 1.2 percent in the October 21, and has now been there for four weeks in a row. The adjusted unrounded rate rose to 1.219 percent in the week, the first time the unrounded rate has topped 1.2 percent since 1.2063 percent in the June 3 week. There's a hint that unemployment is rising among those eligible for benefits. However, the rate remains quite low in the historical context and does not suggest any significant deterioration in the labor market.

Jobless claims for the October 28 week are expected to come in at 213,000 versus 210,000 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.