Job Losses Less Than Expected

Early this morning, the ADP Employment Change report was released and the news was good. Kind of. The reported decline of 2.76M jobs in May was much, much lower than the 9M that was expected. April’s job loss tally of 20.2M was also revised to 19.56M. More sort of good news. Friday morning will bring us May’s Unemployment Report from the BLS where Non-Farm Payrolls are looking at a decline of 8M. Less good news from the Mortgage Bankers Association this morning was a report showing that Mortgage Applications slipped 3.9% for the week ending May 29th.

In early trading, bonds have reacted with a modest sell-off, pushing the Ten-Year’s Yield up to about 71 basis points. Crude oil is pretty steady at around $36 while gold has slipped a bit to around $1,718.

Later this morning, reports are due out for ISM and Markit PMIs, Factory Orders, Durable Goods Orders, and Capital Goods Orders. None of that news is expected to contain the same positive surprise as this morning’s ADP report, but that’s how surprises work.