The ADP Employment report came in very close to estimates at 183k versus the forecasted 189k. However, the more notable element was the revision to the previous months report raising the figure to 300k from the reported 213k. This report would support the argument for a strong economy as well as an anticipated strong NFP report this Friday, but stocks are drifting lower and bonds are holding their ground for now. Tomorrow does not have any market moving reports, so it is likely the markets will continue to tread water in their respective ranges.
Friday’s NFP jobs report is setting up to be the potential market mover. The initial reactions can result in drastic swings back and forth, so we will maintain our locking bias.