Jobs and GDP reports a mixed bag

ADP's estimate for private payroll growth for April is 220,000 vs an upwardly revised 209,000 in March. The corresponding consensus for Friday's jobs report from the government is 213,000 vs March's 192,000.

Economic growth came to a standstill in the first quarter, largely due to adverse weather slowing production. First quarter GDP rose a meager 0.1 percent annualized after a 2.6 percent gain in the fourth quarter. The advance estimate fell well short of market expectations for a soft 1.1 percent rise.

Final sales of domestic demand gained 0.7 percent after a 2.7 percent boost in the fourth quarter. Final sales to domestic purchasers eased to 1.5 percent in the first quarter after a 1.6 percent increase the prior quarter.

The overall price index posted at 1.3 percent annualized, following 1.6 percent in the fourth quarter. Analysts expected 1.7 percent. Core chain prices softened to a 1.3 percent rate from 1.9 percent in the prior quarter.

The biggest positive for the first quarter came from services PCE-which added 1.96 percentage points to growth. Other positives-including durables and nondurables PCEs-were miniscule.

The biggest negative was a drop in exports which took away 1.07 percentage points from GDP. Also negative were business equipment, residential investment, inventory investment, and government purchases.

Adverse weather clearly had an impact on overall economic growth in the first quarter. Market focus should be on the latest monthly data-including motor vehicle sales and employment data released this week for April.