Last week’s initial jobless claims raised many eyebrows after coming in at 264k, suggesting that tighter financial conditions is beginning to take its toll on the labor market, lowering the chances of another rate hike form the Fed. However, this week the print came in at 242k, below consensus of 254k. At the same time the less followed Philadelphia manufacturing index came in at -10.4 vs forecast of -19.8. The health of the manufacturing sector appeared to take a sharp turn lower after the NY Empire State Manufacturing Index unexpectedly sank to 031.8 in May from 10.8 in April.
