A Close Look At Wednesday’s Key Market Events (Update)

A Close Look At Wednesday’s Key Market Events (Update)

The Key Employment Situation Report for February will be released Friday. It is certain to be a market-moving report.

Before then the market may catch an early look of what it can expect on the payrolls side of things with Wednesday’s release of the ADP National Employment Report.

I. ADP National Employment Report; Wednesday, 2 March at 8:30a EST

Note: February ADP Employment Change: Actual 214-K, consensus 190-K, Prior 193-K revised from 205-K

Why it is important

  1. This report provides a snapshot of the monthly change in non-farm, private employment
  2. Market participants often extrapolate from the change in the ADP report what to expect in the government’s monthly report for non-farm private payrolls, which is is released 2 days later
  3. The pace of US job growth in the private sector will influence the market’s outlook for the direction of the Fed’s monetary policy
  4. This report provides an important look at where private sector job growth can be found by way of company size and industry.

A closer look

The Numbers: Wednesday, 2 March 8:30a EST

ADP Employment Change: Estimate 185-K, Consensus 190-K and Last 205-K

What is in play?

Index ETFs

  1. SPDR S&P 500 ETF (SPY)
  2. PowerShares QQQ ETF (QQQ)
  3. iShares Russell 2000 (IWM)
  4. SPDR Dow Jones Industrial Average (DIA)

US Treasuries and Related ETFs

  1. iShares 1-3 Year Treasury Bond ETF (SHY)
  2. Schwab Short-Term Treasury ETF (SCHO)
  3. ProShares UltraShort 20+ Year Treasury ETF (TBT)
  4. iShares 20+ Year Treasury Bond ETF (TLT)

Currencies

  1. USD/JPY
  2. EUR/USD

II. Economic Reports

Wednesday early, these economic reports scheduled to be released : MBA Mortgage Index (Consensus NA), and ADP Employment Change (Consensus 190-K).

Note: MBA Mortgage Index for the week ending 27 February: Actual -4.8% W-W, Prior -4.3%, and February ADP Employment Change: Actual 214-K, consensus 190-K, Prior 193-K revised from 205-K

III. Earnings Reports

Wednesday early, these companies are scheduled to report earnings to the market: IBP, UAM, AFAM, FOR, INXN, LINC, DEA, TPUB, DSX, MTLS, ANF, BF.B.

Stay tuned…

Paul Ebeling

Westbrook Radio

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