Early Payroll Count Comes in Light

ADP announced its April Employment Change Report this morning and the monthly gain in private payrolls of 742k was below estimates calling for 850k. March’s total of 517k was revised to 565k. The Bureau of Labor Statistics will release its April Jobs Report on Friday and a payroll gain of 995k is predicted. Earlier, the Mortgage Bankers Association reported that Mortgage Applications fell 0.9% for the week ending April 30th following the prior week’s slide of 2.5%. Later this morning, Markit U.S. and the Institute of Supply Management will issue April PMI reports for the Services sector.

Treasury prices were already slightly lower in early trading and have been little affected by this morning’s statistics. The Long Bond is yielding about 2.28% with the Ten-Year bringing 1.60%. The Two-Year is unchanged at 16 basis points. Crude oil continues to rally with this morning’s slight gain taking that price to $66.51. Gold is little changed at $1,778. Equity futures are pointing to at least a partial rebound after yesterday’s sell-off.