ADP says private sector payrolls increased 216,000 in November, although they dropped the October increase to 119,000 from the originally reported 147,000.

The average gain was 168,000 for the two months, pretty much on target for what was expected. Month-to-month volatility aside, and such volatility often garners much more attention than the data deserve (see the October revision), the real story of the ADP data is that the slide in employment growth that began in 2015 has ended (see chart) - thanks, in large part, to the easing of financial conditions the FOMC put in place earlier this year.

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Employment in the goods-producing sector of the economy (total and manufacturing) has yet to revive from the Fed's push back in 2014 to steepen the yield and, in turn, strengthen the dollar. While the financial conditions have eased, our trading partners showed no such inclination to weaken the dollar back to, for example, 1.45 euros. As such, while most sectors of the economy are employing at least or more than the numbers employed at the pre-recession peak - construction and manufacturing employment remain about 15% below their respective highs.

As for what this all means for the Fed, pretty much nothing - they are going in December, not a big deal since it is all priced in, and what and how they do things going forward depends on the fiscal policy they have been asking for through most of this cycle.