A positive ADP report and prelude to nonfarm payrolls - Nomura

Analysts at Nomura offered a reveiw f the ADP report ahead of Friday's (U.S.) closing session's nonfrm payrolls.

Key Quotes:

"ADP employment: ADP nonfarm private employment gained 154k jobs in September, in line with our forecast but below the market consensus (Nomura: 155k, Consensus: 165k). The prior month was revised down to 175k from 177k. Most of the gains were from the service sector, with the increase of 151k, while the good producing sector slowly increased by 3k. Within the goods-producing sector, the construction sector gained 11k workers but payrolls in the manufacturing sector lost 6k. This implies that the mining and logging sector lost 2k jobs. Within the services-providing sectors, the professional and business services sector showed the sharpest gain of 45k. The financial services industry and trade, transportation, and utilities sector added 15k and 11k, respectively.

Today’s report is consistent with our call for Friday’s employment report to show nonfarm and private payrolls gained 160k and 155k, respectively, in September. The consensus is 172k for nonfarm and 170k for private payrolls."