US DATA: Initial Unemploy Claims -44k to 434k for 7..

US DATA: Initial Unemploy Claims -44k to 434k for May 7 wk, approx back
to Apr’s avg but still elevated from a 390k avg in March. Claims were
upped in AL due to storms. Continuing claims +5k to 3.756m in Apr 30 wk.
–
Apr PPI +0.8%, core +0.3% (+0.2834% unrounded) for +6.8% YOY overall
(worst since +8.8% in Sept’08) and +2.1% YOY core (highest since +2.3%
in Aug’09), more than expected. In core, cars +0.5%, lt trucks +0.6%,
tires +4.8%, aircraft +1.2% after -0.6% in Mar, and footwear +0.8% after
-0.1% boosted the total. Food +0.3% incl gains in fruits & meats, and a
record +56.7% in eggs. Energy +2.5% (7th jump in a row) as gasoline
+3.6% and LPG, heating oil and nat gas rose. Intermediate PPI +1.3% and
Crude +4.0% completes this dismal picture. We suggest weighting Claims
over PPI, though, as a slowing econ will mean prices too will moderate.