News Summary: Fed action likely after weak data

LAYOFFS RISE: U.S. weekly unemployment benefit applications rose last week to a seasonally adjusted 386,000, the Labor Department said. The increase suggests layoffs are up and hiring will stay sluggish for a fourth straight month.

PRICES DECLINE: U.S. consumer prices fell 0.3 percent in May, according to a second Labor report. It was the largest decline in more than three years and was mainly because a big drop in gas prices.

FED ACTION: Weak job growth and mild inflation makes it more likely the Federal Reserve will announce some new step next week to boost the economy.