Highlights
With no special factors to blame, initial jobless claims rose 10,000 in the May 21 week to a 424,000 level that's 20,000 higher than expected. Revision to the May 14 week is also a negative, up 5,000 to 414,000. The Labor Department isn't citing any weather or auto-related factors for the results. The four-week average of 438,500 is nearly 30,000 higher than a month ago in a comparison that points to trouble for the May employment report. Even the four-week average for continuing claims is higher, at 3.742 million in data for the May 14 week vs 3.702 million in mid April. Stock futures are moving off early gains following this report and following a softer-than-expected revision to first-quarter GDP.

Market Consensus before announcement
Initial jobless claims in the May 14 week fell 29,000 to 409,000, following the prior week's 40,000 decline. Auto and weather effects were no more than isolated in the week's data which saw the four-week average only very slightly higher at 439,000.