U.S. private employers have reported their numbers for April and have come short of economists expectations. This is not good for the economy and will put pressure on markets and bring about a negative outlook for the economy.
NEW YORK | Wed May 4, 2011 8:38am EDT
(Reuters) - U.S. private employers added 179,000 jobs in April, coming in shy of economists' expectations, a report by a payrolls processor showed on Wednesday.
* Economists surveyed by Reuters had forecast the ADP Employer Services report would show a gain of 198,000 jobs. * March private payrolls were revised up to an increase of 207,000 from a previously reported 201,000.
ELIZABETH MILLER, PRESIDENT OF SUMMIT PLACE FINANCIAL ADVISORS IN SUMMIT, NEW JERSEY
"This is something of a disappointment and it will put a greater focus on the jobless claims and non-farm payroll numbers coming out later this week. This is definitely going to be a pressure on markets today, but it is too soon to tell us whether we're having a bit of a reversal in hiring trends. Investors will be hoping for more M&A activity and strong earnings, but jobs will be the focus for the rest of the week."
PETER BOOCKVAR, EQUITY STRATEGIST, MILLER TABAK + CO, NEW YORK
"As has been seen and typically the case, most of the jobs were created by small and medium sized businesses both in the goods producing sector and services. Manufacturing in particular created 25,000 jobs and certainly has been a pleasant surprise for the US economy as it's the seventh month in a row of gains. Today's job gains bring the six-month average to 192,000 favorably compared to the average of 50,000 in the six months priors. While a definite positive, the pace remains below where it should considering the amount of jobs lost in the recession and the ever growing cost of living for many."
TIM GHRISKEY, CHIEF INVESTMENT OFFICER OF SOLARIS ASSET MANAGEMENT IN BEDFORD HILLS, NEW YORK
"April was not a great number, certainly weaker. March was revised upward slightly. Obviously this is a big week with the employment numbers on Friday. Certainly people will look into this and be pessimistic or cautious about Friday's numbers. The breakdown from the release did show some strength in small and medium businesses. The weakness was actually in large businesses, and that is unusual. But certainly optimistic for a broader strengthening in employment.
"Service sector still providing the bulk of the gains here with manufacturing still somewhat weak in terms of growth. Market having a pretty benign reaction to it. It wasn't a huge miss and ADP isn't necessarily always accurate in predicting the U.S. government employment numbers. But a miss nonetheless and shows the economy continue to improve but at a very slow, modest rate."
SCOTT SHERMAN, INTEREST RATE STRATEGIST, CREDIT SUISSE, NEW YORK
"People are taking ADP with a grain of salt. It doesn't tell us that much about the payroll number two days from now.
"It's less than what people were looking for, but it's not so hugely disappointing."
DAVID ADER, SENIOR GOVERNMENT BOND STRATEGIST AT CRT CAPITAL GROUP, STAMFORD, CONNECTICUT
"The bond market is a very tiny bit firmer on this, but don't blink. Fives are outperforming. If this is a precursor to how we'll respond to a similar NFP report we'd judge the reaction rather disappointing."
STOCKS: U.S. stock index futures add slightly to losses.
BONDS: U.S. bond prices steady at lower levels.
FOREX: The dollar steady at lower levels versus the euro.
To see original article CLICK HERE