Financial Professionals


Good Data before the U.S. Jobs Report


The S&P 500 Index continues to balance the continued strong U.S. economic data with the contagion fears in the Middle East. As I suggested last week, I believe the recent price is an adjustment in allocation sizing from "overweight" back to "market weight."  This week's reported data, prior to Friday's jobs report, supports remaining with current allocations, anticipating further equity market appreciation.

U.S. ADP Employment

  • Private sector jobs grew by 217,000 versus consensus estimate of 180,000
  • The surprising strength in ADP suggests Friday's "private sector" job growth may surprise to the upside, possibly +250,000

U.S. ISM Manufacturing

  • Reported at 61.4, above consensus estimates, the ISM is at its highest level since May 2004
  • Employment component rose 2.8 points to 64.5, the highest reading in 38 years
  • The New Orders to Inventories gap widened 3.8 points to 19.2 - an extremely robust level
  • New Orders rose 0.2% for a reading of 68.0 - the highest level since January 2004

U.S. Initial Jobless Claims

  • Claims fell 20,000, well beyond estimates, to 368,000 the lowest level since May 2008

Past performance is not a guarantee of future results.

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