Thursday, January 6, 2011

Sorry ADP, Not Everyone Believes the Economy Created 297,000 Jobs

That big positive surprise this morning from the ADP jobs report was nice while it lasted — which was all of about 30 seconds by market standards.

Unfortunately, a number of traders and economists aren't willing to take seriously the report that ADP and Macroeconomic Advisors put out suggesting the economy created 297,000 jobs over the past month.

A quick straw poll this morning showed a lot of disbelief in the ADP numbers, and the report did virtually nothing to move the stock market, though futures pared some losses immediately after the release.

Equities meandered through morning trading, though other markets did react. In particular, bonds showed a strong reversal of earlier gains, while the dollar gained more than 1 percent and in turn pressured commodities priecs.

But don’t expect many major revisions for Friday’s Labor Department report, expected to show nonfarm job increases of 140,000 jobs and an unchanged unemployment rate of 9.7 percent. (more)

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