ADP Jobs Report Shows Economy Actually Added Jobs Last Month

The market is getting a boost in early trading on some better than expected economic reports. ADP reported that private payrolls rose by 40,000 in May, vs. and expected loss of -30k jobs. Also, the ISM Services Index came in at 51.7, a reading that shows the services sector is expanding and not reflective of an economy in recession.

Oil is down again today, despite the DoE report that crude inventories fell again for the week ending May 30th. Normally, this report would send crude prices higher, so the weakness is notable. Oil prices are down near $122, after topping around $135 a couple of weeks ago.

Brokers are getting a bounce this morning on some analyst upgrades, and a rumor that Lehman (LEH) is buying back stock. The WSJ is reporting again that LEH is seeking capital from overseas. Also, I read that Dan Fuss, the bond mgr from Loomis Sayles whom I respect very much, is buying LEH debt saying that it is 'dirt cheap'. (And Merrill (MER) just upgraded LEH to Buy, $37 tgt)

Asian markets were mixed overnight; the dollar is relatively flat today vs. the Yen and Euro; the 10-year yield is up slightly to 3.92%; the VIX is right at 20; the CBOE put/call is slightly elevated at 0.95