Ahead of Wall Street - March 7, 2012 - Ahead of Wall Street

By
A A A

Wednesday, March 7, 2012

Stocks should be able to recoup some of the losses from the day before following the reassuring labor market reading from payroll processor Automatic Data Processing ( ADP ). The stock market took it on the chin on Tuesday as confusion about the intricate details of the Greek bond swap and the potential for a disorderly default took center stage. The issue is still there given the Thursday deadline for the deal, but the shift in focus today to the domestic labor market should help calm nerves to some extent.
 
A total of 216K private sector jobs were in created in February, according to the ADP, matching expectations. The jobs numbers for January were revised upwards by 3K to 173K. The gains were broad based across industries and business sizes. More than half of the January job gains came from small businesses with less than 50 employees. Medium sized businesses, those with less than 500 employees, accounted for most of the rest of the gains. Construction added 16K during the month, in-line with recent indicators of improving health in the sector in the shape of housing starts and builder confidence. The overall mild weather across broad swaths of the country also likely helped the construction gains.
 
The ADP tally sets the tone for Friday's government jobs report, which is expected to show headline job gains of around 213K. Today's ADP report indicates that the headline print on the Friday non-farm payroll report from the Bureau of Labor Statistics (BLS) will likely be tad lower than current expectations of about 213K. The overall trend on the labor market front remains favorable as confirmed by the steady downtrend in the weekly Jobless Claims data and improvement in the employment components of the ISM surveys.
 
In corporate news, Apple ( AAPL ) is coming out with the latest iteration of the iPad tablet device. It will be interesting to see if this product launch will help stem the recent weakness in Apple shares. Pandora Media ( P ) will also be in the spotlight today following the company's weaker than expected results and guidance after the close on Tuesday.
 
Sheraz Mian
Director of Research


 
APPLE INC ( AAPL ): Free Stock Analysis Report
 
AUTOMATIC DATA ( ADP ): Free Stock Analysis Report
 
PANDORA MEDIA ( P ): Free Stock Analysis Report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research
 
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report




The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.



This article appears in: Investing , Stocks , US Markets

Referenced Stocks: AAPL , ADP , P

Zacks.com

Zacks.com

More from Zacks.com:

Related Videos

Stocks

Referenced

85%
100%
65%

Most Active by Volume

89,070,840
  • $17.26 ▲ 3.23%
78,931,485
  • $7.02 ▲ 4.46%
77,555,734
  • $6.70 ▲ 6.69%
77,025,346
  • $24.66 ▲ 0.69%
74,713,335
  • $101.80 ▲ 1.82%
72,324,726
  • $7.64 ▲ 0.79%
57,112,188
  • $17.84 ▲ 55.27%
53,321,397
  • $18.01 ▼ 4.46%
As of 12/17/2014, 04:15 PM


Find a Credit Card

Select a credit card product by:
Select an offer:
Search
Data Provided by BankRate.com