US companies added 205,000 workers last month, according to the ADP Employment Report.  As expected, the gain was well below December’s advance, which was revised up to a 267,000 increase. The numbers still show that the labor market is expanding at a healthy pace, so let’s not lose sight of this fact. But it’s also clear that the trend is slowing, based on the latest downtick in the year-over-year change.
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Treasury yields continue to fall, making mincemeat of the idea that the Federal Reserve will continue to raise interest rates this year. Everything could change, of course, if the incoming economic data turns out to be stronger than expected. The main event for this week: January payrolls, starting with today’s preliminary estimate for the private sector via ADP’s data, followed by Friday’s official numbers from the US Labor Department. Meanwhile, Mr. Market has been slashing rates across the Treasury curve in the wake of revived worries about economic growth.
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● US Jan auto sales dip but stronger than expected | Reuters
● US economic confidence unchanged in Jan | Gallup
● Redbook: US retail spending +1.2% in Jan vs. year-ago level | Fidelity
● Markit Eurozone Composite PMI: growth slows to 4-mo low in Jan | Markit
● Eurozone retail sales up for 1st time in 4 months | MarketWatch
● China Service Sector Expands Most In 6 Months | RTT