PMI Beat Offsets Labor Miss

Date: January 08, 2026

PMI Beat Offsets Labor Miss

Summary

Market Snapshot

Prior Close
Asset Level Days Change
S&P 500 6,926.30 -0.33%
Nasdaq 23,584.28 +0.16%
Spot VIX 15.72 +2.21%
2 Year Bond Yield 3.48 0 bps
10 Year Bond Yield 4.17 +1 bps
EUR/USD 1.1677 -0.02%
USD/JPY 156.75 -0.02%
GBP/USD 1.345 -0.12%
WTI Oil 57.13 -2.04%
Gold 4,427.91 -0.64%
Bitcoin 90,082.51 -1.31%

Prior Economic Events

Data Prior Cons Actual
MBA 30-Year Mortgage Rate6.32-6.25
MBA 30-Year Mortgage Rate6.31-6.32
ADP Employment Change-29,00047,00041,000
Services Sector PMI52.6052.3054.40
JOLTs Job Openings7.4m7.6m7.1m
Factory Orders Month-over-Month0.20-1.20-1.30
EIA Weekly Crude Oil Inventory-1.9m1.1m-3.8m
EIA Weekly Gasoline Inventory5.8m2.9m7.7m
Speech by Fed's Bowman---

Upcoming Economic Events

Data Prior Cons Time
Trade Balance-52.8m-58.9m08:30
Exports Level289.3m-08:30
Imports Level342.1m-08:30
Weekly Jobless Claims199,000210,00008:30
Nonfarm Productivity Quarter-over-Quarter Prel3.30308:30
Unit Labour Costs Quarter-over-Quarter Prel1108:30
Ny Fed Bill Purchases 1 To 4 Months--09:20
Federal Reserve Balance Sheet6640m-16:30
Building Permits Prel1.3m1.4m08:30
Building Permits Prel--08:30

Yesterday's Recap

ADP employment change came in at 41,000, below consensus of 47,000, reflecting slower hiring amid a weakening labor market. Services sector PMI surged to 54.4 from 52.6, beating expectations of 52.3 and signaling robust expansion in business activity. JOLTs job openings fell to 7.146M, missing consensus of 7.6M, while factory orders declined 1.3% m/m versus expected -1.2%. Fed's Bowman speech emphasized data-dependent policy, tilting toward cautious cuts without signaling urgency. Markets traded calmly with VIX at 15.72 below 16, equities steady at S&P 500 6926.30 and Nasdaq 23584.28, bonds flat at 10-year 4.17%, FX stable with EUR/USD at 1.1677, and commodities subdued with WTI oil at 57.13, gold at 4427.91, and Bitcoin at 90082.51. (cont...)

The Day Ahead

Trade balance data at 08:30, with exports and imports expected to influence Q4 GDP revisions. Weekly jobless claims at 08:30, consensus at 210K versus prior 199K, may reveal employment trends ahead of Friday's payrolls. Nonfarm productivity and unit labor costs at 08:30, expected at 3% q/q and 1% q/q respectively, could impact wage inflation views.

Other Economic Notes

Venezuela's oil deal raised energy sector optimism, potentially boosting US supply and pressuring global prices. Turkey's strong economic growth fueled optimism for 2026, with exports hitting records amid stable inflation. US housing sales declined 11.2% YoY, highlighting affordability challenges despite falling prices.

Fed Watch

In the rate cutting cycle, mixed labor data and PMI beat suggest moderation, favoring fewer cuts at a slower pace. Bowman's speech reinforced data dependence, tilting neutral with shallower easing priced unless employment weakens further. Markets expect 2026 cuts to proceed cautiously, contingent on stable inflation and geopolitical calm.


Source: https://robomacro.com/Research_Notes/US_Macro_Daily_20260108.html