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US Morning Report: US in rescue act, ADP Payrolls beat expectations

YORKTOWN HEIGHTS, NY - JANUARY 13:  (L-R) Exec...

YORKTOWN HEIGHTS, NY – JANUARY 13: (L-R) Executive Producer of ‘Jeopardy!’ Harry Friedman, Contestants Brad Rutter, Ken Jennings, David Ferucci, Principal Investigator of Watson DeepQA technology, IBM Research and Senior Vice President of IBM Research Dr. John E. Kelly III attends a press conference to discuss the upcoming Man V. Machine ‘Jeopardy!’ competition at the IBM T.J. Watson Research Center on January 13, 2011 in Yorktown Heights, New York. (Image credit: Getty Images via @daylife)

If the Street is sad, it should not be at this time on Friday. Among top losers real time, IBM lost $2 to allow Buffet to buy more of the stock, while JP Morgan is now below $35. The Friday employment report to me, seems to have a good omen in the ADP Payrolls that jumped to 176000 bang on cue a day before the Jobs report. Last time the Jobs  report had reported 225,000 Job additions after this number from the ADP Payrolls. However April and May BLS payrolls have been below 80-85K despite the ADP Payrolls reporting 133,000 additions.

Services grew 137,000 in May and 160,000 in June in keeping with higher PMIs reported in the sectors. Small and medium employers(<500) reported 165,000 of the 176,000 gains in June

With China, England and ECB following each other in cutting rates the next step woul dbe to extend the liquidity gains and implement the groth pact including the ne EUR120 B agreed last week. Italian yields are however 6% already again and Federal Bank Liquidity may be primary providers for stability operations in a few weeks.

 

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This entry was posted on July 5, 2012 by in Amitonomics, Banking, European Sovereign Debt crisis, US and tagged , , , , , , , .

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