ADP, Challenger: Job picture improves slightly
First, the Challenger, Gray & Christmas report on job cut announcements showed cuts up to 97,373 in July from 74,393 in June. However, cuts were down 5.7% from the year-ago level. The biggest increases in layoffs were seen in transportation and telecommunications, while the biggest declines in cuts were seen in the government/non-profit and auto sectors.
Second, the ADP report showed the economy shedding 371,000 jobs in July. That was down significantly from a reading of 463,000 in June, and the smallest loss of jobs we've seen from ADP since October 2008. It did miss the consensus forecast of -350,000, however.
The immediate market reaction? After an initial pop on the news, bond futures have reversed and are now down 24/32 on the morning. Stock futures are ever-so-slightly worse, while the dollar has rallied a bit and gold has dipped a bit. But essentially, we're unchanged from where we were before the number.