This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

ADP Data Point to Stormy Weather's Hit on Hiring

NEW YORK (TheStreet) -- Looks like we  have to get through at least one last blast of a disappointing chill before things warm up in this economy.

According to Wednesday's report on private-sector hiring by payroll processor ADP, only 139,000 jobs were added last month. With government expected to shed more workers, we may see a below-forecast reading of 130,000 new jobs when the Labor Department issues its monthly jobs report Friday, said Moodys Analytics chief economist Mark Zandi, who runs the survey on which the ADP report is based.

The ADP report appears to have little effect on stocks so far Wednesday, but the short-term news gets worse from there. 

The ADP jobs survey, which relies on employers' payroll records, is less sensitive to the effect of weather  than the Labor Department's household survey, which relies on workers' own reports of whether they are working during the week including the 12th day of each month, Zandi said. Since the February survey week included bitter cold in much of the country, that could hold down the February numbers from Washington, Zandi said.

"The risks to the estimates are to the downside for February,'' said Zandi, guessing that Friday's report will disclose 130,000 new jobs, missing the consensus forecast of 150,000. His report said the financial-services industry actually shed workers last month, while industries including health care, leisure and hospitality that had been adding jobs rapidly slowed their pace.

The weather isn't the only short-term problem. Manufacturers are likely to pause after a wave of inventory accumulation in the third and fourth quarters that has brought stocks close to where they need to be in an expansion, he said. Consumer spending is likely to be hit at the margins by last year's cuts in food stamp funding, as well as the end of extended unemployment benefits to 1.3 million long-term unemployed.

"In the grand scheme of things, [the cuts] aren't massive, but they are substantial,'' Zandi said. "The combination of the two will shave a couple of tenths of a percent off [gross domestic product] growth" in early 2014.

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
AAPL $117.81 0.00%
FB $105.45 0.00%
GOOG $750.26 0.00%
TSLA $231.61 0.00%
YHOO $32.94 0.00%


Chart of I:DJI
DOW 17,798.49 -14.90 -0.08%
S&P 500 2,090.11 +1.24 0.06%
NASDAQ 5,127.5250 +11.3820 0.22%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs