Thursday, January 5 Market Recap

THURSDAY (DJIA -3) The ADP employment report showed a very robust 325K jobs created in Dec - way above the 178K consensus – but the Dec number may be technically flawed and overstating job growth. We will know tomorrow. Initial claims for unemployment came in at 372K last week – a decent number. The ISM services index came in at 52.6 vs. 53.0 expected; still a good number showing expansion. A resilient stock market bounced back from early declines to close mixed. We think Europe entered into a recession in Q4 on the basis of recent economic data, but they may be out of it before summer.