ADP's payroll report, the warm-up act for Friday's jobs data, could drive market direction more than usual Wednesday.
One reason is that the payroll-services provider's 8:15 a.m. data come ahead of the auction of $21 billion in reopened 10-year notes, 1 p.m. ET, and stronger-than-expected data could help yields rise, giving a concession to the market. Though not viewed as a true picture of the jobs report, the data have become more trusted among market players recently.
"ADP should be interesting. It seems like it's been pretty consistent with the tone of the BLS payroll data for the last several months," said Tom Simons, money market economist at Jefferies. "I don't necessarily rely on it for making adjustments to the forecast for payroll data, but it does give us some sense of what's going on."