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Paychex CEO: Seeing 'Most Positive Movement' In 2 Years

Friday, 3 Dec 2010 | 1:41 PM ET

The top executive from a major payroll provider said he seeing bright spots in the otherwise blighted US job market. Paychex CEO Martin Mucci said Friday that for the last two quarters, checks-per-client are up 1 percent, meaning employers are issuing more paychecks.

"That's the most positive movement we've seen in the last two years," Mucci said, who's company provides payroll services to more than 500,000 small businesses in the US.

Mucci said the November jobs report, which showed the jobless rate climbed to a seven-month high, was "unexpected." But the 50-year-old businessman said he doesn't read too much into one month's data because it sometimes gets adjusted anyway.

Meanwhile, the company's ancillary services, which includes full human resources and record-keeping outsourcing, is still being purchased at roughly the same level, said Mucci.

Call to the Floor: Paychex
Paychex CEO Martin Mucci said that despite the poor jobs report, he sees some bright spots in the US employment outlook.

What's the Trade?

Steve Grasso of Stuart Frankel likes Paychex for its 4.20 percent dividend yield, which Mucci said he doesn't expect to cut, even if the employment picture continues to worsen.

Watch the video to see the full interview with Mucci.

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Trader disclosure: On December 3rd, 2010, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders; Pete Najarian Owns (GRS) Call Spreads; Pete Najarian Owns (GDXJ) Call Spreads; Pete Najarian Owns (DRYS) Call Spreads; Pete Najarian Owns (LOW) Calls; Pete Najarian Owns (MSFT) Call Spreads; Pete Najarian Owns (TCK) Call Spreads; Pete Najarian Owns (C); Pete Najarian Owns (MS); Pete Najarian Owns (NTRS); Pete Najarian Owns (WLT) Call Spreads; Pete Najarian Owns (MEE) Call Spreads; Pete Najarian Owns (FIRE); Grasso owns (ASTM), (BA), (BAC), (BWC), (C), (CSCO), (JPM), (LIT), (LPX), (MOT), (MHY), (NDAQ), (PFE), (PRST), (X)

For Patty Edwards
Edwards Owns (AAPL) For Clients
Edwards Owns (MSFT) For Clients
Edwards Owns (GS) For Clients
Edwards Owns (TIF) For Clients
Edwards Owns (AMZN) For Clients
Edwards Owns (F) For Clients
Edwards Owns (TTM) For Clients
Edwards Owns (MSFT) For Clients
Edwards Owns (XLK) For Clients

For Joe LaVorgna
No disclosures

For Brian Kelly
Accounts Managed By Kanundrum Capital Own (JPM)
Accounts Managed By Kanundrum Capital Own (C)
Accounts Managed By Kanundrum Capital Own (WFC)
Accounts Managed By Kanundrum Capital Own (GDXJ) Straddles
Accounts Managed By Kanundrum Capital Own (DRYS)
Accounts Managed By Kanundrum Capital Own (AAPL)
Accounts Managed By Kanundrum Capital Own (ARMH)
Accounts Managed By Kanundrum Capital Own (SLV)
Accounts Managed By Kanundrum Capital Own (RDC)
Accounts Managed By Kanundrum Capital Own (FCX)
Accounts Managed By Kanundrum Capital Own (TBT)

For Steve Grasso:
Stuart Frankel & Co and it’s partners own (AAPL)
Stuart Frankel & Co and it’s partners own (CSCO)
Stuart Frankel & Co and it’s partners own (CUBA)
Stuart Frankel & Co and it’s partners own (GERN)
Stuart Frankel & Co and it’s partners own (HSPO)
Stuart Frankel & Co and it’s partners own (NWS.A)
Stuart Frankel & Co and it’s partners own (NYX)
Stuart Frankel & Co and it’s partners own (PDE)
Stuart Frankel & Co and it’s partners own (PFE)
Stuart Frankel & Co and it’s partners own (PRST)
Stuart Frankel & Co and it’s partners own (RDC)
Stuart Frankel & Co and it’s partners own (TLM)
Stuart Frankel & Co and it’s partners own (XRX)
Stuart Frankel & Co and it’s partners own (SDS)
Stuart Frankel & Co And Its Partners Own (UNM)
Stuart Frankel & Co and it’s partners are short (QQQQ)
Stuart Frankel & Co and it’s partners are short (MCD)
Stuart Frankel & Co and it’s partners are short (AAPL)

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