U.S. adds 235,000 private sector jobs in December: ADP

Yahoo Finance Live’s Julie Hyman discusses how stock futures are performing following ADP jobs data.

Video Transcript

[AUDIO LOGO]

BRAD SMITH: Here's what you need to know as the clock hits 9:00 AM. Bed Bath & Beyond warns that things will get worse. Shares of the company plummeting this morning after the company said it's headed for major financial troubles. We've got the details in just a moment.

JULIE HYMAN: Plus, trouble in tech as well. Amazon announcing the largest amount of layoffs in the company's history. Becoming just the latest company to shed workers after a year of aggressive hiring.

BRIAN SOZZI: And a House divided. The lower chamber of Congress at standstill, after another failed speaker vote. Kevin McCarthy vows to fight on. But his opponents in the GOP seem just as resilient. We'll break-- we'll bring you the latest on the DC drama.

But, of course, I'll begin today with a market check. Julie, over to you. Lots of things moving, markets, you name it.

JULIE HYMAN: Yeah, and we've got a plunge in the futures that was happening after we got the ADP jobs reading earlier this morning. Coming out with a gain of 235,000, versus the 150,000 that economists had been anticipating. And also an upward revision for the prior month.

Now, remember we get the big government jobs report tomorrow. And that's really the one that the markets key off of. Indeed, there was a little bit of caution this morning being expressed that ADP doesn't always line up with the government jobs report.

Of course, the concern here is that with the job market still expanding at this pace, it's gonna make the Fed's job even harder. Might have to put its foot on the gas pedal even more. Especially emphasized after the Fed minutes yesterday seemed to express concern on the part of Fed participants that the market is not going down enough, not tightening financial conditions enough.

So you see futures down this morning. NASDAQ futures down even more, as you might expect. They tend to be more rate sensitive. And of course, we've got Treasury futures going lower. That means rates are going higher, reflecting this perception about the Fed. Here's the 10-year note. We're seeing that at 3.75%.

And then a quick check as well as to what's going on with some of those large-cap tech stocks in particular. Here you see below some of the premarket moves that we've got here in some of these stocks. And most of them are downward, Sozz.