Initial unemployment claims fell below 400,000 for the first time in over 2 years, hitting 388,000, down 34K, and the less volatile 4 week moving average fell by 12.5K to 414,000.

We are actually at a number that if sustained, might show a meager recovery in the unemployment rate.

The longer term numbers, continuing claims rose by 57K to 4.13 million, and extended benefits fell by 151.5K to 4.53 million.

I would expect the numbers to rise next week, the Christmas season is over, and this sort of move one week tends to have a rebound, but if somewhere around 375K is the new normal, then things are turning up a big.