Initial claims for unemployment insurance totaled less than expected last week, countering other signs that the labor market is weakening.
Stock market futures, which had been negative earlier, turned sharply positive following the 8:30 a.m.
In the previous week, claims had jumped by 14,000, adding to worries that layoffs are on the rise.
"If you're looking for additional weakness in the labor market, you'll need to find it somewhere else."
Concerns escalated over the state of the labor market following last Friday's nonfarm payrolls report, which showed an increase of just 114,000 in July.
Persons:
Dow Jones, Beryl, Robert Frick, nonfarm
Organizations:
Labor Department, Navy Federal Credit Union, Federal Reserve
Locations:
Michigan, Texas, U.S