US initial jobless claims 199K vs 220K expected

The US initial jobless claims came in at 199K, below expectations of 220K and revised up from a prior 214K to 215K. Continuing claims decreased to 1.866M from 1.923M previously, highlighting a downward trend. However, the claims data during the holiday season is notoriously volatile and often subject to significant seasonal revisions, making it a poor gauge for the job market. Despite recent reductions, market participants should be cautious as the upcoming week's data will also experience considerable seasonal influences. Analysts noted that the recent shutdown complicates the interpretation of labor market conditions, but there appears to be little evidence of a weakening labor market from these claims figures. Some policymakers are discussing the notion of a 'low higher, low firing' economy, suggesting that the low firing rates might be more definitive, pointing to labor market strength.