What is ADP National Report & ISM Service Index?
April 4th, 2017
DEFINITION of 'ADP National Employment Report'
A report that measures levels of non-farm private employment. The ADP National Employment Report is based on payroll data from over half of ADP's U.S. business clients. The data represents about 24 million employees from all 19 of the major North American Industrial Classification (NAICS) private industrial sectors.
Read more: ADP National Employment Report Definition | Investopedia http://www.investopedia.com/terms/a/adpreport.asp#ixzz4XSHVKxsj
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What is the 'ISM Non-Manufacturing Index' (ISM Service Index)
ISM Non-manufacturing Index is an index based on surveys of more than 400 non-manufacturing firms' purchasing and supply executives, within 60 sectors across the nation, by the Institute of Supply Management (ISM). The ISM Non-Manufacturing Index tracks economic data, like the ISM Non-Manufacturing Business Activity Index. A composite diffusion index is created based on the data from these surveys, that monitors economic conditions of the nation.
Read more: ISM Non-Manufacturing Index Definition | Investopedia http://www.investopedia.com/terms/i/ism-nonmfg.asp#ixzz4dK9Zfyqq
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Below is what the market expects, what happened,what was previously reported and markets imediate reaction:
| Wednesday, April 5, 2017 | ||||||
| Report | For | Estimate | Actual | Prior | Impact | |
| 2:00 PM | FOMC Minutes | 3/15 | na | na | na | High |
| 10:00 AM | ISM Service Index | Mar | 57 | 55.2 | 57.6 | Moderate |
| 8:15 AM | ADP National Employment Report | Mar | 175k | 263K | 298K | High |
Reaction:
| Wed, Apr 05 2:05 PM Fed's balance sheet reduction text sends Bond prices lower. Alert To Lock! |
| Wed, Apr 05 2:03 PM Fed minutes reveal that most members support balance sheet reduction in 2017 |
| Wed, Apr 05 10:23 AM Dow now up nearly 200 points, but MBS trade near unchanged. |
| Wed, Apr 05 10:02 AM The March ISM Service Index 55.2 vs 57.0 expected and down from 57.6 in February. |
9:00 AM 3.5% Fannie Mae 30-yr coupon down 6 bp at a price of 102.50 down 9 bp when rates were set yesterday at 10:00 am Open 102.56 High 102.59 Low 102.44
| Wed, Apr 05 8:18 AM MBS edge lower after the better-than-expected ADP data. |
| Wed, Apr 05 8:17 AM February ADP data revised lower to 245K from 298K. |
| Wed, Apr 05 8:15 AM ADP reports that there were 263K private jobs created in March, well above the 175K expected. |