New York, Nov 12 (TradersHuddle.com) – Initial jobless claims fell more than expected to a 10 month low, signaling a stabilizing labor market.

According to the Labor Department, Initial unemployment claims fell by 12,000 to 502,000 in the week ended Nov. 7, the lowest level since January. The number of people receiving jobless benefits dropped, as did those getting extended payments.



The four-week moving average of claims, a less volatile measure, decreased to 519,750, the lowest level in almost a year, from 524,250.

Continuing claims dropped by 139,000 to 5.63 million in the week ended Oct. 31, from 5.77 million the prior week.

The continuing claims figure does not include the number of Americans receiving extended benefits under federal programs. The number of people who’ve use up their traditional benefits and are now collecting extended payments fell by about 6,000 to 4.04 million in the week ended Oct. 24.

The market remains practically flat on the news, as the drop in claims is reassuring, but still signals job losses in the economy. The S&P 500 (AMEX: SPY) down 0.16% @ 10:21 AM.