Previewing Nonfarm Payrolls
Benzinga | Sep 07, 2012 06:27AM ET
U.S. equity futures rose early Friday morning as investors became hopeful of a strong nonfarm payrolls report, which is set to be released at 8:30 am EST. Thursday, the S&P 500 closed at its highest level since January 2008 and the NASDAQ closed at its highest since December 2000 on these hopes.
One of the best indicators of the nonfarm payrolls report has been the employment sub-index of the ISM Non-Manufacturing Index, which jumped to 53.8 in August from 49.3 in July. TrimTabs' estimate, based on withheld income and employment taxes, is above consensus at 185,000 jobs added. The consensus estimate is 130,000 jobs added, but of the estimates revised after the strong ADP report yesterday, the average was 135,000.
In other news around the markets:
Apple (NASDAQ:KR ).
On the economic calendar, all eyes are on the nonfarm payrolls report at 8:30 am. Once again, consensus is for 130,000 jobs with the range being about 100,000 jobs wide. The whisper number, what traders are expecting, seems to be higher after the stronger than expected ADP report yesterday and the employment sub-index of the ISM Non-Manufacutring Index.
However, in regards to the ADP report, Bloomberg reported that the report has beaten expectations by 60,000 or more jobs on 11 occasions. Of these 11 times, NFP beat expectations six times and missed five times. Therefore, there is not a large link between the two.
By Matthew Kanterman
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