[video] Quick Take: ADP Delivers Strong Numbers
NEW YORK (TheStreet) -- The ADP jobs report released Wednesday showed more jobs added last month than expected. TheStreet's Debra Borchardt spoke to David Nelson, chief strategist at Belpointe Asset Management, about the impact this could have on the markets.
According to the report, 215,000 private-sector jobs were added to the economy in November, exceeding economists' expectations of 185,000. October results were also revised higher.
Nelson said that historically the ADP report has not been a good indicator of what the nonfarm payrolls report will look like. The federal government data will be released on Friday morning before the market opens.
He said he still expects a solid report on Friday and also believes unemployment will decline.
But doesn't that warrant asset tapering by the Federal Reserve? According to Nelson, the market may react that way, as it did to the ADP report this morning, but ultimately tapering won't begin until later in the first quarter of 2014.
Regarding housing, he said the big question would be how rising interest rates will affect housing prices and home sales.
-- Written by Bret Kenwell in Petoskey, Mich.