CIBC Research discusses its reaction to today's US ADP employment report for the month of March.
"ADP employment report provided a downside surprise for March. The 129K gain in jobs reported, while 46K below the consensus forecast, came atop an upwardly revised February reading. At almost 200K now, the February reading is markedly better than the payrolls report that followed it, and the downside surprise in ADP for March is likely not a signal that Friday's payrolls report will be weak.
Indeed, the underlying trend in payrolls growth is still below that for ADP so we remain comfortable with our above consensus call for payrolls on Friday," CIBC notes.
"The employment index from the ISM non-manufacturing report released later this morning could also provide a clue as to how much weight should be placed on this ADP figure leading up to the payrolls release," CIBC adds.