The Dow Drops 300; ADP Beats Estimates

The Dow took a stumble this morning. The big event for this week is the September jobs report which comes out on Friday. Yesterday’s weak ISM Manufacturing report clearly spooked the market.

This morning, we got a preview of Friday’s jobs data. ADP released its private payroll report for September. This report isn’t always a good match for the official numbers we’ll get on Friday.

Having said that, ADP said that the U.S. economy added 135,000 private jobs last month. That was 10,000 more than expected. That’s the good news. The bad news is that the numbers for August were revised lower. The economy is still creating jobs, but the rate of increase is slowing.

Now all eyes are focused on Friday morning’s report. The unemployment rate has come in at 3.7% for the last three months. If there are signs of weakness, that could sour the Fed to act.

Tech and cyclicals are getting dinged the most this morning.

Posted by on October 2nd, 2019 at 10:14 am


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