I have given ADP a hard time in the past for being a poor predictor of the official Jobs Report, which always comes out two days after ADP releases their numbers. Over the last year or so though, ADP has been pretty spot-on. Will this be the month that again tarnishes their reputation? I hope not. This morning, ADP is showing that there were 246,000 new jobs opened up last month, 30% higher than the expected 168,000, and way better than last month’s 153,000. Some say this is because of the positive optimistic outlook on business owners, some say it’s a new year with new budgets to spend. I just hope it’s accurate.
Janet Yellen & Co. wrap up their two-day FOMC meeting today. At the last press conference, Ms. Yellen downplayed the need for future stimulus, nothing that the current economy is very close to meeting the Fed’s indicated targets. Perhaps, just perhaps, higher interest rates and higher inflation are on their way? We’ll know a little more in three hours.