The Labor Department reported today that new claims for state unemployment insurance rose to 369,000 -- a jump of 18,000 -- in the week ending June 6. The four-week moving average of new claims, one of the 11 components of the Composite Index of Leading Economic Indicators, also rose -- advancing by 2,250 to 357,750. The raw and smoothed indicators both logged the highest readings since April 20.

The 2,250 rise in the moving average was more than enough to erase the 750 drop from the preceding report. Thus, the uptrend begun six weeks ago, at the 345,750 level, is still intact.

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In other news today, all the major retailers announced their sales results for June. On a same-store basis, sales at Wal-Mart were up 5.8 percent over May. At Sears, sales rose 7.7 percent. Kmart logged a 2.9 percent gain, Dayton Hudson sales advanced 2.6 percent, but J. C. Penney's same store sales lagged by 0.4 percent. Same-store sales at the Gap rose by 12 percent.

The Salomon Brothers retail sales index rose by 4.4 percent in June, following a 5.2 percent rise in May. In June last year this index rose 3.4 percent.

The figures reported today do not include retail sales by automobile dealers and restaurants. Those numbers are included in the Commerce Department's monthly retail sales report which is scheduled to come out tomorrow.

Transmitted: 7/11/96

Byline: Lafferty (MF Merlin)