US DATA: (2 of 4) Also on Wednesday, the Challenger report on layoff
intentions in May should offer some evidence about the health of the
labor market. Layoff activity has been quite low in recent months, and
should remain so for now. While job growth remains sluggish, job losses
have plateaued. Initial jobless claims on Thursday could well remain
elevated. Severe weather has plagued the Midwest with widespread
flooding and a series of tornados that caused pockets of destruction. It
may take a few weeks for the full extent of impact on new filings to be
seen. The ISM will release its indexes for manufacturing and
non-manufacturing on Wednesday and Friday, respectively. Regional data
suggests that there has been some slowing in the factory sector in May,
in part related to shortages in the supply chain and also due to severe
weather conditions that have hindered deliveries. Services are likely to
feel the pinch less, but consumers and business have been expressing
less confidence, and therefore are likely to limit demand in the
non-manufacturing sector.