When We’ll Know If the Labor Market Is a Problem

What’s in Today’s Report:

• When We’ll Know If the Labor Market Is a Problem
• What the Negative ADP Jobs Report Means for Markets

Futures are marginally higher following a mostly quiet night of news.

Politically, there are reports of back-channel negotiations occurring to end the government shutdown and a prolonged shutdown is not expected, although no resolution is imminent (and that’s still ok from a market standpoint).

Economically, Eurozone Unemployment slightly missed estimates (6.3% vs. (E) 6.2%).

Today there will be no jobless claims because of the shutdown so the key economic reports will be Challenger Job Cuts (E: 86k) and Factory Orders (E: 1.4%) while we also have one Fed speakers, Logan (10:30 a.m. ET).  Given yesterday’s negative ADP report, a spike in Challenger layoffs will create additional anxiety about the labor market (and possibly weigh on stocks more than ADP did initially on Wednesday).