The Market News Today: Expected 148K Job Growth in March ADP Report

James Hyerczyk
Published: Apr 3, 2024, 09:41 UTC

Key Points:

  • ADP survey predicts 148K new jobs, signaling strong private sector growth.
  • Dow futures drop 1%, reflecting inflation concerns and rate cut uncertainties.
  • Intel's foundry business loss grows by 34%, affecting stock value.
  • Gold prices surge as investors seek inflation hedge; oil supply fears escalate.
  • Treasury yields rise, dollar strengthens amid revised Fed rate cut outlook.
The Market News Today

ADP Preview: March Sees Steady Private Sector Job Growth

The ADP survey anticipates a boost in private sector jobs, with an expected addition of 148K positions in March. This comes amid Federal Reserve Chairman Jerome Powell’s remarks at a San Francisco conference, emphasizing a strong economy with no immediate plans for rate cuts. The survey, often a precursor to the BLS Nonfarm Payrolls report, hints at sustained labor market health, potentially influencing the Fed’s monetary policy direction in the face of consistent core PCE inflation figures.

U.S. Stock Futures Waver as Fed Rate Cut Hopes Dim

U.S. stock futures are showing modest changes in the pre-market session on Wednesday, with Dow futures down by 1% following a second day of losses. This cautious market sentiment is fueled by persistent inflation concerns and high treasury yields, suggesting a delayed Federal Reserve rate cut. Despite this, some analysts maintain an optimistic outlook, expecting a market rebound. Key events include the upcoming ADP payrolls report, ISM services index release, and speeches from Federal Reserve officials, providing further market direction.

Intel Shares Drop 4% as Foundry Losses Surge by 34%

Intel shares declined 4% in pre-market trading on Wednesday, following the announcement of a 34% increase in its foundry business losses, hitting $7 billion in 2023, up from $5.2 billion the previous year. This first detailed financial disclosure of the division’s performance comes amidst significant CHIPS Act funding. Despite current setbacks, Intel’s CEO Gelsinger envisions future profitability, linking the losses to earlier strategic and technological decisions, with an aim for a turnaround in earnings by 2030.

Gold Rallies on Inflation Hedge; Oil Up Amid Supply Fears

Amid rising inflation concerns and geopolitical unrest, gold prices continue their record-breaking streak, with spot gold reaching $2,286.24 per ounce, marking a significant safe-haven demand. U.S. gold futures also see a 1.1% rise. Concurrently, oil prices gain as U.S. crude inventories unexpectedly fall and global tensions escalate, particularly due to Ukrainian attacks on Russian oil infrastructure and Middle East conflicts. These factors collectively heighten worries about tightening oil supplies while supporting the demand for gold as a reliable hedge.

Treasury Yields Climb; Dollar Strengthens Amid Fed Outlook

The 10-year Treasury yield rises to 4.379%, reflecting market reactions to U.S. economic data and Fed rate cut expectations. Traders anticipate a 62% chance of a June rate cut, down from 70% last week. Federal Reserve Presidents Mester and Daly forecast cuts, but not immediately. The dollar strengthens, impacting major currencies, as robust U.S. economic data fuels expectations of reduced Federal Reserve rate cuts, with the market now expecting less than the Fed’s projected three cuts this year.

About the Author

James is a Florida-based technical analyst, market researcher, educator and trader with 35+ years of experience. He is an expert in the area of patterns, price and time analysis as it applies to futures, Forex, and stocks.

Did you find this article useful?