On Friday morning, the government is going to release the jobs report for January and I expect it will be a disaster. I think the economy lost at least 500,000 jobs last month. For December, the unemployment rate was 7.2% and that number could go rise to 7.5% for January, which would be worst jobs market in 16 years.
This morning, ADP estimated that 522,000 jobs were lost in January. Their methodology gets a lot of attention on Wall Street, though their estimates haven’t been very accurate recently.
I won’t make a guess as to how bad it will be, but it won’t be pretty. Until then, Wall Street seems to be very nervous as to what the jobs report will ultimately say.