Stocks Lower on Payroll Data! U.S. Stock weakened following the disappointing ADP employment change report, which estimated only 130,000 jobs were added to private payrolls in October. The goods producing sector added 24k, while service sector jobs increased only 107k. Manufacturing employment was up 5k, while construction jobs rose 14k. Payrolls in the financial sector dipped 5k. The U.S. CPI September gains of 0.2% (0.180%) for the headline and 0.1% (0.122%) for the core were only slightly stronger than the August mix of 0.1% for both (0.089% and 0.127%, respectively). The averages opened slightly higher but have since drifted into red. The directionless trading may last until the Fed’s rate announcement, which is due at 2:00 pm ET. The Fed is universally expected to keep its current $85 B pace of QE asset purchases intact. No one looks for any changes in rates, which are probably years off. Policymakers are unlikely to tinker with the forward guidance language today, though it likely remains a major discussion point for the Committee.
Mario Randholm Blog. Mario is the founder of Randholm & Co. S.A.C., an investment management company dedicated to producing superior returns for its clients and employees by adhering to mathematical and statistical methods.