ADP Reports Jobs Gain of 166,000

ADP, the private payroll firm, reported that the economy created 166,000 new jobs last month. This comes ahead of Friday’s big jobs report from the government. The ADP report has a mixed record of predicting the government’s numbers. Economists were expecting ADP to report 180,000 new jobs, so the miss is probably weighing on today’s market. ADP also revised its August jobs number down by 17,000.

While the stock market rose yesterday, as it has on many first days of the month this year, it’s giving back about half that gain today. Energy is the only sector that’s great while staples and industrials are down the most.

There are a few items to pass on about our Buy List stocks:

Some Microsoft (MSFT) investors are trying to get Bill Gates out as chairman of Microsoft. Given how many shares he owns, Bill can largely do whatever he wants. But if Gates is more interested in philanthropy, then he may want to leave as chairman so he can focus on giving away his fortune full time. It’s not a bad idea, and the investors are probably right. My view is that the stock would most likely rise on such an announcement, so that’s why I’d support it.

There’s also been talking of Alan Mulally leaving Ford (F) to become CEO of Microsoft. I doubt that would happen. Mulally seems happy where he is and the Ford turnaround is still unfolding. Also, Mulally is 68. MSFT needs to find an energetic, young CEO.

Posted by on October 2nd, 2013 at 12:15 pm


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