ADP nonfarm payroll falls by -301K in January
ADP nonfarm payroll estimate for January 2022 came in at -301K versus estimate of 200K.
- The fall was the largest since April 2020.
- The decrease was the first since December 2020.
- The December was revised to 776K. That is down -31K from 807K
- Goods down -27K
- Services down -274K
- The nonfarm payroll estimate for Friday is for +150K
- small firms saw a -144K decline
- medium firms (50 -499 employees) fell -59K
- large firms saw a 98K decline
- leisure and hospitality fell 154K
- transportation and utilities fell minus 62K
- Manufacturing -21K
- education and health services -15 K
- construction -10 K
The decline is a surprise versus the expectations. However there has been a lot of chatter even from Fed officials at the employment report this month would be weaker than expectations due to omicron. That seems to be playing out.
Dow Jones is still up 44 points, while the NASDAQ leads the way with a 216 point gain. The S&P is currently up 32 points.
Crude oil is trading at seven near highs after OPEC kept the production increases at 400K starting March. Crude oil is trading at $89.34 up $1.15 or 1.3%.
