ADP private sector employment is always reported the Wednesday before the Friday where U.S. government employment data is released.   Since it varies from what the government reports relatively substantially it is usually given less attention but this morning ADP released a -10,000 private sector contraction in employment.  This was my fear for Friday - that we'd see the first contraction in the private sector in many months.

Now with that said, the government can add 100-125K birth death jobs and inflate away the losses* as it has been doing a great job of during the entire Great Recession so with the 'help' of that piece of fiction it might still be a positive when the government reports their data Friday, but either way, we seem to have passed back over to at best marginal job growth far below that needed simply to keep up with population growth.

*please note you cannot just add or subtract birth death model jobs to the reported number to get the 'true' number.

Whatever the case, futures could care less about ADP because Chinese PMI was +0.5 higher than last month and that's all that matters.   Or we can take the view that more job losses are great because it means higher profits.  (I'll have a piece related to that in the next 24-48 hours!) Party on Garth.