Initial jobless claims drop, but continuing claims rise

More modest progress for the U.S. labor market: initial jobless claims unexpectedly dropped 52,000 to 565,000, but continuing claims rose 159,000 to 6.88 million, the U.S. Labor Department announced Thursday.

It was the lowest initial jobless claims total since January. However, the Labor Department cautioned that last week's initial jobless total was likely skewed lower, due to the short week which included the July 4 Independence Day holiday.