Jobless Claims
Tomorrow's employment report is not expected to be gangbusters, expectations that won't be changed from the latest initial claims data that show an unexpected climb to 383,000 in the May 26 week. This is up 10,000 from the prior week which was revised 3,000 higher to 373,000.
Challenger Job-Cut
Last week's massive 27,000 layoff announcement from Hewlett-Packard made for a swollen 61,887 headline in Challenger's layoff count. This compares with 40,559 in April and 37,135 in May last year. But the Hewlett-Packard layoffs, which will extend out to October, are not likely to be a factor for tomorrow's monthly employment report. Outside of computers, layoff announcements in May were heaviest in the transportation and financial sectors.
GDP
First quarter GDP growth was downgraded with the Commerce Department's second estimate. Real GDP grew a modest 1.9 percent, compared to the initial estimate of 2.2 percent and fourth quarter pace of 3.0 percent, annualized. The second estimate matched analysts' forecast for a 1.9 percent rise.
The downward revision was due to lower estimates for durables PCEs, services PCEs, inventory investment, and government purchases and a higher estimate for imports. Partially offsetting were higher estimates for nondurables PCEs, nonresidential fixed investment, residential investment, and exports.
You have to laugh. Once again they revised last week's report up (which they reported as steady) so they could report this week's as down!
For the past month the only thing steady was an increase in joblessness.
Number of people filing for 1st-time US unemployment benefits dips 2,000 to 370,000 in latest week, US says - @CNNMoney
Jobless Claims
8:30 AM ET
Jobless claims are trending back at March levels, well down from April and pointing to moderate improvement for this month's monthly employment report. Initial claims for the May 19 week came in at 370,000 vs a revised 372,000 in the prior week and compared with another 370,000 reading the week befor.
SEE:
Fake economic headlines hide the truth
Jobless number steadily rose from 357k to 370k
