The ADP Employment Change report came in better than expected but doubts about the figures may cause investors to turn their attention straight to Friday’s Nonfarm Payrolls data which is expected to cause more volatility.
Key quotes
“ADP, America’s largest payrolls’ provider, published another devastating jobs report – 2.76 million jobs were lost in May. However, that is far better than a plunge of nine million that was on the cards.”
“The upbeat data has pushed S&P futures above 3,100, extending its gains and the greenback is under marginal pressure. However, some suspect that the magnitude of the shock to the job market makes calculations hard. Missing the mark by so much may cause investors to shrug off the report.”
“At the moment, ADP’s figures only cause confusion, with one camp encouraged and the other suspects. Higher uncertainty means a more volatile reaction on Friday.”
“If the private-sector statistics are well-correlated with officials’ ones, the trend is your friend. However, if it is too good to be true, it may trigger a reckoning – significant, even if temporary.”
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