There is a major tug of war going on with U.S. stocks this morning. Early before the open, U.S. Stocks were looking at a pretty negative open due to weakness in the Euro versus the dollar. As I write, this, the Euro was trading close to 1.28 against the Dollar, off about .0120, which is a sizable move. Normally, this would have led to a big sell-off, as it is expected that a European recession will adversely affect the U.S. However, employment figures coming out starting at 8:15 with the ADP report were quite bullish, with a gain in private sector employment of 325,000. Jobless claims also fell to 372,000 this week, down 10,000 from a revised 382,000 last week. This resulted in some gains in stock futures, but these remain muted by the European issues.
Rick Santelli pointed out on CNBC that the high numbers in the ADP report over the last three years were in December, so it remains to be seen whether there are seasonal factors at play.
Stay tuned!
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