Yahoo Finance Live anchors break down the September ADP jobs report.
BRIAN SOZZI: All right, let's stay on the economy here. We've got some new job numb-- jobs numbers for the month of September from within the ADP Employment Report. The economy added 208,000 jobs in September, according to the report. This ahead of Friday's Non-Farm Payrolls Report, one that will be closely watched for signs of what the Fed-- Federal Reserve may or may not do with respect to interest rates.
And Brad, interesting to see. And this is gonna continue, I think, a theme we have been seeing in the market since that ISM report a couple of days ago, the manufacturing report, that any sign of good news in the economy, this market is going to sell off. And as soon as we got that ADP report, we saw a next leg lower in stock futures.
Now, anything over 200,000, I would say, is pretty solid. But the market doesn't want to see that. They probably wanted to see-- I think some of these investors that have bid up stocks the past two days, close to 6% on the S&P 500, they wanted something under 100,000. And they didn't get it.
BRAD SMITH: Yeah. And it was entirely noteworthy, too, that the entire goods-producing, holistic sector was actually down by about 29,000 jobs, negative 29,000 jobs. So 29,000 jobs lost in the private payrolls there in the goods-producing sector, and largely from natural resources and mining, and manufacturing.
But for those sectors that are still producing jobs at this point in time, in the service-providing part of this equation, you've got transportation, trade, and utilities bringing in the most job ads. Net adds of 147,000 jobs there. Another gainer that we saw, professional business services. And then more cyclical, education and health services. Some of the other sectors that continue to watch going forward from here, too.
BRIAN SOZZI: Glad you mentioned the goods-producing. So those jobs down 29,000. Declines in natural resources and mining. Declines in manufacturing. I think that dovetails nicely with what we just got in GDP. The economy contracted in the first half of this year.
And you saw a lot of manufacturing companies pull back. You've seen companies like a FedEx come out here and warn, if the market-- you know, if the bulls were looking for something to hang their hat on, that's your bad data point. So maybe ignore that headline number and look at that goods-producing data.
To me, that suggests everything we've been seeing that has been hammering the stock market or hammered the stock market in September, that is the effect of the strong dollar. That has the effect of higher rates. That is the effect of the consumer starting to feel more stress on their household budget. It is that goods-producing part of this ADP report.
BRAD SMITH: One of the notes in this report, "While job growth is stable, it remains below the recent three-month average." That's particularly noteworthy. We're gonna get even more on that later on during today's show with Nela Richardson, who is the ADP chief economist. Gonna join us to break down some of these numbers and really what it sets up, even going into the Friday BLS report as well on the holistic employment situation front here in the US.
BRIAN SOZZI: Big day indeed.
BRAD SMITH: Absolutely.