Weekly jobless claims was the trigger this morning after the overdone rally yesterday; claims plunged by 52K to 565K, expectations were for a 4K decline. Continuing claims however continued to increase to a new high, 6.833 mil from 6.72 mil last week.The fall in claims to under 600K is the lowest since January; employers are still chopping jobs but not at the previous pace. With continuing claims increasing there is yet any new hiring happening. Markets are now convinced the worst is behind us but the future remains clouded.At 10:00 May wholesale inventories, expected to be down 1.0% were down 0.8%; a 1.29 moth inventory level based on sales up 0.2%. Not much reaction to the report as it was in line. At 1:00 this afternoon Treasury will complete the 3 leg auctions this week. $11B of 30 yr re-opened bonds will be sold. So far the Treasury borrowings over the past month have seen strong demand; yesterday's bid-to-cover ratio at 3.23 was the best I can recall seeing in any 10 yr note auction.The IMF stepped in yesterday with its view that the world economy is starting to pull out of the recession. It may even lower its outlook for bank losses and mark up its forecasts for next year according to the IMF's chief economist. IMF is saying a recovery will be weak however.