I was asked: "Can you explain the influence of the ADP report?"
My interpretation:
The strong report told us that the JOBs in US are stronger than anticipated so FED/Yellen will fear labor inflation.
So she:
>1) is for sure hiking in march and
>2) is for sure doing 3 hikes and
>3) may need to be more hawkish than ever so more than 3 hikes? or more than .25 hikes etc.
All of these are downside pressure on stocks; prop up the US $; downside pressure on bonds (but other things may offset that one), etc.
most importantly: BAD for wall street since the fiscal spending that Trump promised may find opposition. They can't borrow too much in rising rates.
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Nic