Initial unemployment claims were slightly...>

US DATA: Initial unemployment claims were slightly below expectations in 

the May 26 wk, -13k to 221k vs 224k expected. While claims have moved 

back to more normal levels after hitting multi-decade lows a month ago, 

they still suggest a tight labor market.

- The 4-wk moving avg +2,500 to 222,250 in the May 26 wk. The avg could 

rise further next wk as the 211k level in May 5 wk rolls out, bringing 

the avg back in line with a more normal trend.

- NSA claims -5,669 to 201,374 in the current wk, compared with the 

+6,565 that seasonal factors expected and payback for last week's 

surprise jump. The current wk's level is well below the year ago level 

of 232,138.

- Claims were estimated for California, Hawaii, Kansas, Maine, and 

Virginia, likely due to the shorter reporting period from the Monday 

holiday this week. As a result, a revision to the May 26 wk data is 

possible when the actual data are incorporated. 

- Continuing claims -16k to 1.726m in the May 19 wk, enough to pull the 

4-wk avg down to 1.744m, the lowest point since the Dec. 15, 1973 wk.