CNBC's Steve Liesman tells the traders he's “concerned about the ADP number (because) it showed an incredible weakness in the service sector. Service providers had been the area that’s kept us above water.”
And that’s the good news. ING Bank analyst Rob Carnell thinks a loss of one million jobs is coming "sooner than you might think."
"At the risk of sounding like 'Dr. Evil', there is a very real possibility of seeing monthly payrolls falling by a million in the next few months," Carnell wrote.
Payroll losses could reach seven figures as soon as January or February, he added.
In case you’re wondering, for December, ING's forecast is for payrolls to drop by 750,000.
What’s the bottom line? According to Steve Liesman “the market knows unemployment could go to 8% -- the question is have they priced it in?”
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Trader disclosure: On Jan. 7th, 2008, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Adami Owns (AGU), (BTU), (C), (GS), (INTC), (MSFT), (NUE); Najarian Owns (CSCO), (MSFT); Najarian Owns (XME) Calls, (NVLS) Calls, (NVDA) Calls; Najarian Owns (XLB) Call Spreads; Najarian Owns (EEM) Long Call Spread; Najarian Owns (ERTS) Long Call Spread; Najarian Owns (MSFT) Short Calls; Seymour Owns (AAPL), (BAC), (EEM), (F), (FXI); Karabell Owns (CL), (DRYS), (FCX), (GOOG), (JPM), (NOK); Doug Kass Is Short (TLT)
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