ADP Report Should Help Market - Analyst Blog
07 Março 2012 - 6:09AM
Zacks
Stocks should be able to recoup some of the losses from the day
before following the reassuring labor market reading from payroll
processor Automatic Data Processing (ADP).
The stock market took it on the chin on Tuesday as confusion about
the intricate details of the Greek bond swap and the potential for
a disorderly default took center stage. The issue is still there
given the Thursday deadline for the deal, but the shift in focus
today to the domestic labor market should help calm nerves to some
extent.
A total of 216K private sector jobs were in created in February
according to ADP, matching expectations. The jobs numbers for
January were revised upwards by 3K to 173K.
The gains were broad-based across industries and business sizes.
More than half of the January job gains came from small businesses
with less than 50 employees. Medium-sized businesses, those with
less than 500 employees, accounted for most of the rest of the
gains. Construction added 16K during the month, in-line with recent
indicators of improving health in the sector in the shape of
housing starts and builder confidence. The overall mild weather
across broad swaths of the country also likely helped the
construction gains.
The ADP tally sets the tone for Friday’s government jobs report,
which is expected to show headline job gains of around 213K.
Today’s ADP report indicates that the headline print on the Friday
non-farm payroll report from the Bureau of Labor Statistics (BLS)
will likely be tad lower than current expectations of about
213K.
The overall trend on the labor market front remains favorable as
confirmed by the steady downtrend in the weekly Jobless Claims data
and improvement in the employment components of the ISM
surveys.
In corporate news, Apple (AAPL) is coming out with
the latest iteration of the iPad tablet. It will be interesting to
see if this product launch will help stem the recent weakness in
Apple shares. Pandora Media (P) will also be in
the spotlight today following the company’s weaker-than-expected
results and guidance after the close on Tuesday.
APPLE INC (AAPL): Free Stock Analysis Report
AUTOMATIC DATA (ADP): Free Stock Analysis Report
PANDORA MEDIA (P): Free Stock Analysis Report
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