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Hitting the 2017 Ground Running: GM, TWTR, ADP

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Tuesday, January 3, 2017

If you’re like me, you’re looking forward to renewed market and economic economy activity to kick off this new year. All that’s been speculated upon, especially since November 8th’s election, will finally find its place somewhere in reality. And econ reports get busy right away this week, capping off with the big Friday Jobs Report from the Bureau of Labor Statistics (BLS).

Aside from ISM Manufacturing results being released this morning at 10am ET (ISM Services will come out on Thursday), we also see Congress getting back to work this morning. The Republican-heavy House and Senate look to make corporate tax form and deregulation top initiatives for this body of lawmakers. The ACA, aka Obamacare, may also find itself voted down after 40+ failed attempts by Congress during President Obama’s leadership, but it’s unclear what might replace the wide-reaching healthcare policy.

President-elect Trump has also hit the ground running in 2017, or should we say “tweeting” — the latest company within his Twitter crosshairs is General Motors (GM - Free Report) , in which he threatens a big border tax for the major automaker due to Chevy Cruze plant the company has in Mexico. GM has responded that the majority of Cruzes sold in the U.S. are made at the company’s plant in Ohio. This is an ongoing public debate 3+ weeks before Trump officially takes office.

Market futures are up big this morning largely due to the OPEC agreement set to take effect in cutting global production. WTI prices have jumped over 2% to its highest level in a year and a half, nearing $55 per barrel. Should the cutback occur as planned, a notable amount of the global supply glut should be worked off, near term. Whether countries will all play fairly with the agreement remains to be seen.

We will also see private-sector jobs numbers from ADP (ADP - Free Report) this week, although due to the New Year holiday, this report will come out Thursday morning instead of Friday. Analysts expect 166K private-sector jobs, and 185K from the BLS survey the following day.

Mark Vickery
Senior Editor

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