AUS
NZ
UK
CA
USA
FRA
GER
ESP
ITA
NLD
PRT
SWE
GRC
IND
POL
BRA
ZAF
RUS
CHN
UAE
S&P 500 is marginally in the red at writing even after the monthly private payrolls data suggested that the U.S. labour market continued to slow down in September.
Private payrolls came in well below expectations
Private sector employers in the United States added 89,000 jobs last month, as per the ADP National Employment Report – smallest gain since early 2021 and well below 160,000 that economists polled by Dow Jones had expected.
Today’s data offers more leeway to the U.S. Federal Reserve to consider being done with rate hikes. According to Keith Lerner of Truist Advisory Services:
We would lean in and look at this as an opportunity because you’ve seen prices pull back pretty good.
The benchmark index is currently trading just above its 200-day MA around the 4,200 level.
Why is Lerner positive on the S&P 500 index?
ADP or Automatic Data Processing Inc also reported the 12th straight monthly decline in annual wage growth today to 5.9% in September.
Its report attributed the slowdown primarily to large-scale businesses that shed 83,000 jobs last month. Truist’s Lerner also said today on CNBC’s “Worldwide Exchange”:
The reason why we are starting to get a bit more positive on a short-term basis is the percentage of stocks in the S&P 500 is now the most oversold since last fall.
It is worth mentioning here, though, that the ADP figures can be significantly different that government’s official number which is due on Friday. Estimates are for it to print at 170,000 versus 187,000 in August.
The post S&P 500 outlook after ADP National Employment Report today appeared first on Invezz.
