I am not clear at this point, if as market speculators we are cheering for good news or bad news, but judging from futures this ADP report was ‘just right’ – not too good, not too bad. According to ADP the private sector added 91,000 jobs. This is not enough to keep up with population growth or bring down the unemployment rate but of course not a negative number either. Nothing to dissuade the Fed from bringing in another round of helicopters, which is probably the most important thing to the market right now.
While this report and Friday’s government data rarely line up, if we assume 20-25K or so losses in the government sector, they would actually line up quite well with economists forecasts for a print of 60Kish.
Yesterday the S&P 500 held that 20 day moving average as it shook off the consumer confidence data – it continues to take bad news as good, and good news as good – this is David Tepper thinking circa 2010. Next stop is that 50 day moving average.