Now that good economic news is horrible news for the market, the last thing stocks needed today, with Europe and Egypt imploding fast, was a strong harbinger of Friday's NFP number. And in the first part of today's jobs preview duo, the ADP report, it got just that, with the ADP private payrolls rising to 188K from 134K in May, and modestly above expectations of a 160K print. Will this transform into a 200K+ print on Friday sending the market into a tailspin, or will the initial claims due in minutes fix everything by missing horribly, we will find out shortly.
OTTAWA — Stephen Poloz is inheriting an economy that is stumbling but still managing to look respectful compared to many other advanced nations.
Still, Mr. Poloz, who took over from Mark Carney as Bank of Canada governor on Monday, will have plenty to answer for when he appears later this week in front of the House of Commons finance committee.
Tim Duy on the employment situation report:
Mixed Messages in the Employment Report, by Tim Duy: Another first Friday,
another employment report. Is this what our lives are meant to amount to?
Sitting glassy eyed in front of a screen, clutching a cup of coffee like a life
preserver, waiting for the internet to spit up some numbers that are only going
to be changed next month? And to do this day, after day, after day?
There will be some ugly numbers in the October employment report to be released on Friday. The unemployment rate will probably increase sharply, and the number of part time workers for economic reasons will also increase. Excerpts from the BLS on the impact of the government shutdown:
WASHINGTON — U.S. job growth grew modestly in January and gains in the prior two months were bigger than initially reported, supporting views the economy’s sluggish recovery was on track despite a surprise contraction in output in the final three months of 2012.
Employers added 157,000 jobs to their payrolls last month, the Labor Department said on Friday. There were 127,000 more jobs created in November and December than previously reported.
The unemployment rate, however, edged up 0.1 percentage point to 7.9%.