Disappointing numbers from the payroll survey by ADP Employer Services will keep the market on edge today as Wall Street waits for official government data on initial claims for unemployment tomorrow and then on nonfarm payrolls and the unemployment rate on Friday.
Normally the ADP report doesn’t move the market very much since the survey doesn’t correlate very well with the official government numbers on the job market. But with worries high about the state of the U.S. economy and the potential for a big negative jobs number on Friday the negative surprise in the ADP data won’t do anything to lighten the dark mood on Wall Street.
According to the ADP numbers, employers expanded payrolls by just 13,000 in June. The consensus among economists surveyed by Bloomberg called for a gain of 60,000 jobs.
The consensus among economists, according to Briefing.com, is that Friday’s payroll numbers will show that the U.S. economy lost a net 100,000 jobs in June and that the official unemployment rate climbed to 9.8% from 9.7%.
Today’s data from ADP will raise fears that the consensus of a net 100,000 jobs lost is too low.
Not a good way to begin the day after the beating stocks took yesterday.