CB Consumer Confidence which had declined in April, increased moderately in May. The Index now stands at 95.4, up from 94.3 in April. Analysts were anticipating incline to 95.3. The Present Situation Index increased from 105.1 last month to 108.1 in May. The Expectations Index edged down to 86.9 from 87.1 in April.

Separate report on New Home Sales showed that sales of new single-family houses in April 2015 were at a seasonally adjusted annual rate of 517,000, well above expectations on a rate of 501,000. This is 6.8% above the revised March rate of 484,000 and is 26.1% above the April 2014 estimate of 410,000. The median sales price of new houses sold in April 2015 was $297,300; the average sales price was $341,500. The seasonally adjusted estimate of new houses for sale at the end of April was 205,000. This represents a supply of 4.8 months at the current sales rate.

Thursday's session brought Unemployment Claims and Pending Home Sales figures. In the week ending May 23, Unemployment Claims were at 282,000, an increase of 7,000 from the previous week's revised level. The previous week's level was revised up by 1,000 from 274,000 to 275,000. Analysts were predicting decrease to 271,000. The 4-week moving average was 271,500, an increase of 5,000 from the previous week's revised average. The previous week's average was revised up by 250 from 266,250 to 266,500. 

Pending home sales rose in April for the fourth straight month and reached their highest level in nine years. They increased 3.4% to 112.4 in April from a slight upward revision of 108.7 in March, well above expectations on incline by 0.8%, and is now 14.0% above April 2014 (98.6) — the largest annual increase since September 2012 (15.1%). The index has now increased year-over-year for eight consecutive months and is at its highest level since May 2006 (112.5).

Friday's US session was marked by GDP, Chicago PMI and Revised Consumer Sentiment figures. US GDP decreased at an annual rate of 0.7% in the first quarter of, according to the "second" estimate. In the fourth quarter, real GDP increased 2.2%. The downturn in the percent change in real GDP primarily reflected a deceleration in PCE and downturns in exports, in nonresidential fixed investment, and in state and local government spending that were partly offset by a deceleration in imports and upturns in federal government spending and in private inventory investment.

The University of Michigan final index of sentiment for the month decreased to 90.7 from 95.9 in April, however this was above prelim reading and expectations on decrease to 90.0. On the other hand, it marked the biggest decline since the end of 2012. “Although the loss in confidence narrowed in late May, the decline for the month as a whole was still substantial as consumers have adopted more modest prospects for a rebound following the economy’s dismal first-quarter performance,” Richard Curtin, director of the Michigan Survey of Consumers, said in a statement.

Chicago PMI figures showed decline to 46.2 points, missing forecasts on incline to 53.1. “Although the loss in confidence narrowed in late May, the decline for the month as a whole was still substantial as consumers have adopted more modest prospects for a rebound following the economy’s dismal first-quarter performance,” Richard Curtin, director of the Michigan Survey of Consumers, said in a statement.

This week markets will be looking at:

ISM Manufacturing PMI (Monday 16:00)

Factory Orders (Tuesday 16:00)

ADP Non-Farm Employment Change (Wednesday 14:15)

Trade Balance (Wednesday 14:30)

ISM Manufacturing PMI (Wednesday 16:00)

Unemployment Claims (Thursday 14:30)

Non-Farm Employment Change/Unemployment Rate (Friday 13:30)