Stocks are rallying this morning after better than expected jobless claims. Weekly jobless claims fell 30,000 to a seasonally adjusted 339,000. Most economists were expecting claims to rise to 370,000. This is the lowest level jobless claims have been at since February 2008. This report is distorted though after the Labor Department said one large state did not report their claims and that this state made up most of the decline. Expect to see a large revision to the upside next week.

The major stock averages are up between 0.3% and 0.5% in late morning trading. The Dow is up 49 points, the Nasdaq is up 16 points and the S&P 500 is up 8 points. [Read more...]