Join        Login             Stock Quote

Once Again, ADP Report Shows No Correlation With Monthly Jobs Data

 September 02, 2011 11:50 AM

The market is lower in early trading on the heels of a very disappointing monthly jobs report. The nonfarm payrolls data showed that the economy added zero jobs in August. That is well below both the consensus figures (70k) as well as the whisper numbers going around yesterday.

Additionally, private payrolls only increased by 17,000, far less than the 110,000 that had been expected. And the unemployment rate remained elevated at 9.1%. Today's report was another indication that the ADP report that comes out two days before the NFP report has not bee a good leading indicator.

Asian markets were lower overnight, and Europe markets were down this morning amid weakness in the banking sector. Our banks are also sharply lower today after news reports that the FHFA is going to sue some large banks over mortgage-related matters.

The dollar is higher today, which is weighing on most commodities. Oil prices are down to $86.50, and ag prices are lower also. Gold and silver are both higher, benefiting from the flight-to-safety trade, with gold prices back up to $1875.

The 10-year yield is dropping again, back down to 2.06%. Last time down, we saw the 2.0% level hold. As for the VIX, it is up +5% currently to 33.35.

Trading comment: The last 2 sessions validate why I wanted to remain cautious. The volatility we have seen has not left the market, although I hope it peaked in August. But we have not heard any concrete solutions out of Europe, and recent economic data has not been all that great either. I would be surprised if we retested the August lows so quickly. Rather, I expect September to bring choppy trading, but one where traders might be able to buy into support levels and sell into resistance. For investors, my advice is to remain cautious and defensive.
iOnTheMarket Premium


Comments Closed

rss feed

Latest Stories

article imageGermany Is On The Rebound - Time To Buy?

Based on this year's 17% spike in the Stoxx Europe 600 Index, it seems investors have found a home in read on...

article imageIs Drought Risk In The American West An Economic Threat?

The historic and ongoing drought in California is getting harder to ignore in terms of its potential impact read on...

article imageFunds Behaving Badly

Discipline is still the key to read on...

article imageGenuine Parts Co. (GPC): This Company's Raised Dividends For 59 Years

There are 253 million cars and trucks driving along U.S. roads. And the average age of those automobiles is read on...

Popular Articles

Daily Sector Scan
Partner Center

Fundamental data is provided by Zacks Investment Research, and Commentary, news and Press Releases provided by YellowBrix and Quotemedia.
All information provided "as is" for informational purposes only, not intended for trading purposes or advice. iStockAnalyst.com is not an investment adviser and does not provide, endorse or review any information or data contained herein.
The blog articles are opinions by respective blogger. By using this site you are agreeing to terms and conditions posted on respective bloggers' website.
The postings/comments on the site may or may not be from reliable sources. Neither iStockAnalyst nor any of its independent providers is liable for any informational errors, incompleteness, or delays, or for any actions taken in reliance on information contained herein. You are solely responsible for the investment decisions made by you and the consequences resulting therefrom. By accessing the iStockAnalyst.com site, you agree not to redistribute the information found therein.
The sector scan is based on 15-30 minutes delayed data. The Pattern scan is based on EOD data.