From the Desk - Economic Commentary
Brandon Casey, Member Strategies - 2/4/2026
U.S. equities are mixed in early trading today as investors assess fresh economic data. The DJIA is higher, while the S&P 500 and Nasdaq are lower. All three major averages were lower on Tuesday after the late day sell-off.
On the labor front, ADP reported that private sector employment increased by 22,000 jobs in January, below expectations of 45,000 and down from a revised 37,000 gain in December. The report showed hiring was concentrated in education and health services, which added 74,000 jobs, while manufacturing payrolls declined for the thirty‑second consecutive month. Pay growth for job‑stayers was unchanged at 4.5% year-over-year.
Separately, the ISM Services PMI was unchanged at a reading of 53.8% in January. It was the nineteenth straight month the sector expanded. Business activity, new orders, and employment all expanded for the month.
Subscribe to our daily From the Desk newsletter to get economic commentaries and updated market rates sent directly to your inbox.
Subscribe Here