ADP REPORT shows how few the choices for FED

The ADP private payrolls survey reported that the private sector added only 38,000 new jobs in May, its lowest since September and less than one-fourth the 180,000 new jobs that the consensus expected. The goods producing sector lost 10,000 jobs, which is the first decline in seven months. The service sector gained 48,000 new jobs, much softer than expected, though still its 17th straight gain. Although the supply chain disruptions in Japan and weak weather help explain some of the weakness, the figure increases worries that the recent slowdown in the economy is turning into something more severe. Shocked by the dismal reading, stock market futures dropped off dramatically following the report, and the 10-year Treasury yield fell to 3%.