With market participants awaiting the preliminary jobs report from payroll processor ADP, consensus is calling for the creation of 190,000 private payrolls last month. Given that January figures were much stronger than expected at 246,000 jobs created, an outcome near the forecast looks the most likely scenario, and could further confirm the view that the economy is on solid enough footing to withstand a rate hike next week.
Other economic reports scheduled for Wednesday include January wholesale inventories and weekly mortgage applications. The U.S. Bureau of Labor Statistics will also post revised fourth quarter productivity numbers, which economists expect to marginally increase from the preliminary figure, to an annualized rate of 1.40%. After the most recent rally, US equities closed lower yesterday, with the Dow and the S&P 500 recording their first two-day drop since January.
Early Employment Data on Tap
Daily Analysis - 08/03/2017