Continue reading Stock Futures Higher Ahead of ADP Employment Data

Stock Futures Higher Ahead of ADP Employment Data originally appeared on BloggingStocks on Wed, 30 Mar 2011 08:30:00 EST. Please see our terms for use of feeds.

Automatic Data Processing Inc. (ADP), which I first wrote about on May 8, 2009, at a price of $36.84, is doing battle with major, psychological resistance at $50, but the view from here argues the uptrend is stronger and should prevail. Here's why:

Look for ADP's FY2011 revenue to increase 4% to 7% on better-than-expected U.S. monthly job growth and business formation. A 4% to 6% revenue rise is likely in FY2012.

Continue reading ADP: Rising with the U.S. Economy

ADP: Rising with the U.S. Economy originally appeared on BloggingStocks on Mon, 28 Feb 2011 14:00:00 EST. Please see our terms for use of feeds.

Continue reading Is ADP Trending Toward $50 and Beyond?

Is ADP Trending Toward $50 and Beyond? originally appeared on BloggingStocks on Fri, 10 Dec 2010 13:45:00 EST. Please see our terms for use of feeds.

In a breakthrough on the jobs front, the U.S. added 93,000 private sector jobs from October to November, according to the latest ADP National Employment Report released today. The previous month's report was revised upward to 82,000 from 43,000.

November's gain was the largest private sector rise in three years. It is also the tenth month in which job growth has exceeded 47,000.

By sectors, gains were as follows:

Continue reading U.S. Adds 93,000 Private Sector Jobs in November

U.S. Adds 93,000 Private Sector Jobs in November originally appeared on BloggingStocks on Wed, 01 Dec 2010 09:20:00 EST. Please see our terms for use of feeds.

Automatic Data Processing's (ADP) September private sector employment report -- which came in at a worse-than-expected loss of 39,000 jobs -- is not a data point that investors should ignore. That said, investors need to retain a proper perspective regarding the metric.

Institutional investors, public policy makers, and economists monitor the ADP report primarily because it's the last, monthly, national job tally before the U.S. Department of Labor's monthly, non-farm, payroll report -- the nation's best and most comprehensive survey of labor market conditions, called the Employment Situation.

Continue reading ADP's Private Employment Report: Useful for Investors?

ADP's Private Employment Report: Useful for Investors? originally appeared on BloggingStocks on Wed, 06 Oct 2010 18:00:00 EST. Please see our terms for use of feeds.

According to the ADP National Employment Report, US businesses cut 39,000 jobs in September, as reported in the Financial Times.

We've heard for weeks that the economy was slowing. Now for the first time in eight months, U.S. businesses shed jobs. Jobs in the private sector are the backbone of economic growth. This is where new jobs are created. Businesses are holding pat, not risking new hires. What this means is that at the business to business level, there simply are not that many new orders.

Continue reading U.S. Private Sector Cuts 39,000 Jobs

U.S. Private Sector Cuts 39,000 Jobs originally appeared on BloggingStocks on Wed, 06 Oct 2010 16:00:00 EST. Please see our terms for use of feeds.

Alcoa (AA), Marriott (MAR) and Yum! Brands (YUM) kick off the new earnings season this week. Analysts surveyed by Thomson Reuters are looking for moderate year-over-year earnings and revenue growth in the third quarter from each of these dividend payers.

Note that Marriott and Yum! Brands have exceeded consensus estimates in recent quarters and have First Call consensus buy recommendations as well. They are also trading near their 52-week highs, while Alcoa shares are closer to the 52-week low despite a 22% rise in the past three months.

Continue reading Week in Preview: New Earnings Season, Employment Data and More

Week in Preview: New Earnings Season, Employment Data and More originally appeared on BloggingStocks on Sun, 03 Oct 2010 12:30:00 EST. Please see our terms for use of feeds.

Automatic Data Processing (ADP), which I first wrote about on May 8, 2009, at a price of $36.84, continues to meander at/near $40, but I still like the shares at this juncture. Here's why:

Look for ADP's FY2011 revenue to increase 2% to 3%, collared by to-date lower-than-expected U.S. monthly job growth and business formation.

Longer-term, the payroll out-sourcing market has ample room for market share gains and the mining of new client theaters, especially small/medium-sized businesses, also is appealing. International business opportunities and a strong balance sheet further supports the favorable view. A better-than-decent annual dividend of $1.36 adds to the positive story.

Continue reading ADP: Sideways Action Continues

ADP: Sideways Action Continues originally appeared on BloggingStocks on Thu, 02 Sep 2010 15:00:00 EST. Please see our terms for use of feeds.

Continue reading ADP Reports a Drop in Private Sector Jobs, but Markets Continue to Rally

ADP Reports a Drop in Private Sector Jobs, but Markets Continue to Rally originally appeared on BloggingStocks on Wed, 01 Sep 2010 10:20:00 EST. Please see our terms for use of feeds.

"We believe that high-quality stocks purchased at historically low-price-to-high-yield offers the best potential for downside protection and upside appreciation," says dividend specialist Kelley Wright.

The editor of Investment Quality Trends explains, "Here we look at three blue chip stocks that have earned our top designation for outstanding dividend growth: IBM (IBM), Automated Data Processing (ADP) and Abbott Laboratories (ABT).

Continue reading Blue Chip Trio: IBM, Abbott and Automated Data

Blue Chip Trio: IBM, Abbott and Automated Data originally appeared on BloggingStocks on Thu, 26 Aug 2010 11:00:00 EST. Please see our terms for use of feeds.

Here is a common sentiment about the stock market: "No fun at all. As I have said before, I believe it has turned into one big casino largely divorced from its original goal of providing capital to companies who produce something of value."

There's a lot of truth to what "granny" recently said to me in an e-mail. Fortunately she also noted "FYI Granny's up 5.86% + dividends." That would give her a gain of about 10% in the past ten months since I posted Where should granny put $50,000, suggesting a very conservative portfolio for an uncertain time.

Not only has she earned a very nice return, surpassing her CD account by 9.5% (20 fold), but she was able to do so with a great deal less volatility than the overall market most of us have lived through.

Continue reading Chasing Value: Granny Said, 'It Has Turned into One Big Casino'

Chasing Value: Granny Said, 'It Has Turned into One Big Casino' originally appeared on BloggingStocks on Mon, 16 Aug 2010 13:30:00 EST. Please see our terms for use of feeds.

Continue reading Blue Chip Buys: The Timely Ten

Blue Chip Buys: The Timely Ten originally appeared on BloggingStocks on Wed, 14 Jul 2010 13:20:00 EST. Please see our terms for use of feeds.

So, how is that Summer of Recovery working out? Following Tuesday's drop, the market was slightly lower Wednesday morning thanks in part to the ADP payroll report. According to the report, employers added 13,000 jobs in June, falling short of the consensus estimate for 60,000 jobs. This data looks at private-sector jobs only and suggests that payroll gains were tame in June thanks to small businesses that were cutting jobs.

All of Wednesday morning's news wasn't bad, as the European Central Bank (ECB) offer of three-month funds came in short of expectations. This data means that the region's banks may not be as ECB-dependent as some thought. In addition, the financial sector is prospering as the exposure to European banks was made to appear a bit less toxic. Furthermore, Democrats in Congress decided to take a bank tax off the table in the new financial overhaul bill. This move has helped bring Republicans on board and makes the bill look like it may pass.

Continue reading Dow on Verge of Worst Second Quarter Since 2002

Dow on Verge of Worst Second Quarter Since 2002 originally appeared on BloggingStocks on Wed, 30 Jun 2010 11:45:00 EST. Please see our terms for use of feeds.

According to ADP, U.S. companies hired 55,000 additional workers in May, which marked the fourth straight increase in private-sector jobs. According to the data, service-producing industries added 78,000 jobs and goods-producing industries lost 23,000 jobs.

The ADP report is bolstering bulls on the Street a day ahead of the release of nonfarm payroll data and the unemployment rate. My concern is that expectations called for an increase of 100,000 jobs added in May. By my University of Cincinnati math, the data came in worse than expected by some 45,000 jobs.

Continue reading ADP Data Shows 55,000 Jobs Added

ADP Data Shows 55,000 Jobs Added originally appeared on BloggingStocks on Thu, 03 Jun 2010 10:00:00 EST. Please see our terms for use of feeds.

"Fear is back and it can be seen in the internals. So what is one to do? What we always do: identify quality, establish value, and take advantage of opportunity when it presents itself," suggests Kelley Wright.

The editor of Investment Quality Trends -- an advisory service that assesses blue chip stocks by analyzing their historic dividend yield levels -- adds, "While all ships go out with the tide, value is eventually rewarded. Remember, we are in this for the long haul.

"Our current Timely Ten -- featured below -- is our reasoned expectation based on our methodology and experience for what we believe will perform best over the next five years. Do we believe that all 10 will go up simultaneously or immediately? Of course not.

Continue reading The Timely Ten: Blue Chip Buys from IQ Trends

The Timely Ten: Blue Chip Buys from IQ Trends originally appeared on BloggingStocks on Wed, 02 Jun 2010 13:10:00 EST. Please see our terms for use of feeds.

Continue reading Band-Aid Economics -- J&J Loving It

Band-Aid Economics -- J&J Loving It originally appeared on BloggingStocks on Mon, 10 May 2010 14:00:00 EST. Please see our terms for use of feeds.

Continue reading ADP: Recovering In-Sync with the U.S. Economy

ADP: Recovering In-Sync with the U.S. Economy originally appeared on BloggingStocks on Wed, 05 May 2010 18:00:00 EST. Please see our terms for use of feeds.

Here are some highlights from this past week's earnings coverage on BloggingStocks:

• Aflac Inc. (AFL) higher Q1 earnings were better than analysts expected, due in part to a stronger yen.
• Automatic Data Processing Inc. (ADP) Q3 EPS were the same as a year ago and revenue inched higher.
• BlackRock Inc. (BLK) higher Q1 earnings fell short of analysts' expectations due to acquisition-related charges.
• Broadcom Corp. (BRCM) posted record revenue in Q1 and swung to a profit from a year-ago loss.
• Burger King Holdings Inc. (BKC) topped Wall Street's Q3 earnings estimate, but same-store sales fell.

Continue reading Earnings Highlights: Caterpillar, Comcast, DreamWorks, Ford, Kodak, P&G and More

Earnings Highlights: Caterpillar, Comcast, DreamWorks, Ford, Kodak, P&G and More originally appeared on BloggingStocks on Sat, 01 May 2010 12:40:00 EST. Please see our terms for use of feeds.

Continue reading IQ Trends' Blue Chip Buys: The 'Timely Ten'

IQ Trends' Blue Chip Buys: The 'Timely Ten' originally appeared on BloggingStocks on Fri, 23 Apr 2010 13:00:00 EST. Please see our terms for use of feeds.

Continue reading Closing Bell: Could Have Been Far Worse (C, AIB, OXGN, OSTK)

Closing Bell: Could Have Been Far Worse (C, AIB, OXGN, OSTK) originally appeared on BloggingStocks on Wed, 31 Mar 2010 16:20:00 EST. Please see our terms for use of feeds.