Job losses slowed during May

Challenger noted that while job cut totals have steadily fallen since January, growing unemployment is still a major concern. "This decline in job cuts could be short-lived," John Challenger said in a statement. "The second quarter is typically the lowest quarter of the year when it comes to job cuts." So far this year, employers have announced 822,282 jobs compared to 394,193 a year ago.

Some may take this as a hint at the monthly jobs report to be released by the government on Friday. This report is expected to show that the economy shed 550,000 jobs in May, slightly more than April. The unemployment rate is expected to rise to 9.2% from 8.9%.

John Challenger made sure to point out that the second quarter often holds the lowest number of job cuts, and expressed concern that the decline could be short-lived. If the report is stronger than expected, we will see a rally, plain and simple. My question is, if a rally ensues, is it simply investors ignoring the statistics or is it a sign of true strength? Only time will tell.