Coming Week: Getting Past GM's Bankruptcy

As May has wound to a close, General Motors(GM Quote) and news of its probable bankruptcy have dominated the headlines and made it hard for anyone to look ahead to the first week of a new month.

But once the government-imposed deadline for the automaker's restructuring comes and goes Monday, traders will have to turn their attention quickly to a spate of economic reports scheduled to be released, including the latest monthly jobs report.

At 8:30 a.m. EDT Friday, the Labor Department will release the nonfarm payrolls report for May, which is expected to show that the U.S. economy lost 550,000 jobs during the month. If economists' forecasts are correct, that number would be an increase from April's loss of 539,000, likely impacted by jobs lost during Chrysler's bankruptcy.

Signs of a worsening job market will not bode well for bulls. Traders have already reacted negatively to reports that show the rate of decline has slowed, instead wanting clear signs of economic improvement. If the jobs number comes in worse than the previous month, it will be very tough for bullish investors to swallow.

"Essentially, investors are still finding themselves in an environment where the deterioration has abated, but without any tangible upside beats about which to get excited," wrote Mike O'Rourke, chief market strategist with institutional broker dealer BTIG, in an email. "With every week that passes, the likelihood of continued improvement rises. Still, investors want a data point that is tangible and makes the decision-making process clear-cut."