Jim Cramer Quick Take: ADP Figures Do Not Predict Jobs Number
NEW YORK (TheStreet) -- February's ADP employment report was released Wednesday and was once again underwhelming. Don't use the number to predict Friday's nonfarm payrolls report, asserted TheStreet's Jim Cramer, co-portfolio manager of the Action Alerts PLUS portfolio.
"Stop doing it," he said of investors who predict Friday's nonfarm payroll results with Wednesday's ADP employment report. "It's not indicative of anything, it's not predictive."
Although ADP's report failed to top economists' expectations, Cramer doesn't believe Friday's report will be that great either.
It's worrisome if the nonfarm payrolls result misses expectations because it would mark the third consecutive month of disappointing results. In his new book, Get Rich Carefully, Cramer warns that this type of event starts to show a pattern of economic behavior that concerns him.However, there is one caveat in this case: The weather. It isn't just an excuse, it's actually been pretty bad this year.
The weather was terrible leading up to Valentine's Day and towards the end of last month. As a result, it will likely weigh on the results. "I don't expect too much out of the number," Cramer concluded. -- Written by Bret Kenwell in Petoskey, Mich. Follow @BretKenwell
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