U.S. stock futures move deeper into red after ADP report

[rfranklin]

Source: Marketwatch

U.S. stock futures move deeper into red after ADP report
By Steve Goldstein, MarketWatch
LONDON (MarketWatch) -- U.S. stock futures declined Wednesday after a surprise report showing private-sector employment dropped during March.

S&P 500 futures fell 3.9 points to 1,165.50 and Nasdaq 100 futures fell 5 points to 1,960.50. Futures on the Dow Jones Industrial Average fell 28 points.

The dollar (INDEX:DXY) also extended losses after ADP said 23,000 private-sector jobs were lost during March, surprising economists who expected a 40,000 rise.

"The March employment decline was the smallest since employment began falling in February of 2008. Yet, the lack of improvement in employment from February to March is consistent with the pause in the decline of initial unemployment claims that occurred during the winter," said Joel Prakken, chairman of Macroeconomic Advisers LLP.



Read more: http://www.marketwatch.com/story/us-stock-futures-edge-back-before-adp-report-2010-03-31?dist=beforebell

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Jobs are the key, not the DOW or the banking stocks or the brokerage accounts of the uberwealthy.

[xchrom]

1. Recommend

[damyank913]

2. The ADP report doesn't take into account the severity of the winter

Or the anticipation of a severe spring (flooding due to excess snow).

[rfranklin]

3. The economists who were anticipating 40,000 plus....

were certainly aware of the weather.

My point is that the focus should be on a radical reorientation of our economy focusing on job creation. Recently, as much as 30% of corporate profits were coming from the financial segment of the economy--a segment which produces nothing and merely skims off a percentage of transactions. That's why you see twenty bank branches and brokerage offices in most towns while the retailers and other businesses are disappearing.

Extending umemployment benefits and funding "shovel ready" projects is fine but as long as we think that patching up the system and trying to revive the bubble economy, we are doomed to long term massive joblessness.

[damyank913]

11. I thought that the ADP report had more to do with actual work hours that were logged...

And not so much economists anticipation.

[happyslug]

5. As to temperatures, the past winter was mild,

We had heavy snow in the Mountains of Appalachian but the temperatures stayed within the normal range (And Canada had less snow then normal).

As to a severe spring, most of the Snow in Pennsylvania is gone, as it is in most of that part of the US East of the Mississippi River. I do NOT know the conditions out west, but I have heard they had less snow fall then normal. Thus the possibility of a Severe flood is minimal at the present time.

[Po_d Mainiac]

8. That wasn't winter, just a pro-longed late fall, with short days. n/t

[Po_d Mainiac]

7. It also accounts for the hiring of census takers

This is not just a bad number.....It's worse!

[high density]

4. When did ADP become the new source for labor stats?

I don't recall them doing this during the Bush administration.

[rfranklin]

6. They report based on their stats...the government has their own report...

due out on Friday.

[Dr.Phool]

9. They've been doing it for a at least a few years that I know of.

During the Bush reign also.

And I've noticed that their numbers are always wrong. Every time. If they say we lost 20,000 jobs, you can bet the official numbers will be about 60% higher. Look for about a 35-40,000 loss in a couple of days when the real numbers come out.

[conspirator]

10. "Buying futures, selling futures, when there is no future" nt

[high density]

12. They were only off by 185,000 (800%)

Maybe next time.

[depakid]

14. Gotta asjust that number to reflect short term government employment

[Name removed]

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