Earlier in the day, the ADP report was expected to show another terrible number, and economists had expected another 9 million jobs lost (down from 20.23 million in April). However, the report came out much more encouraging and showed that the US economy shed only 2.76 million jobs in May, according to the ADP report.
“The impact of the COVID-19 crisis continues to weigh on businesses of all sizes,” said Ahu Yildirmaz, co-head of the ADP Research Institute. “While the labor market is still reeling from the effects of the pandemic, job loss likely peaked in April, as many states have begun a phased reopening of businesses.”
Moreover, the ISM non-manufacturing PMI improved as well in May and printed 45.4, up from 41.8 in April. It looks like the services sector could get back above the 50.0 threshold within three months if this pace of recovery remains.
Oil consolidated today and was somewhat lower during the US session, with the WTI benchmark hovering near the 37 USD mark.