Market volatility continues

By CNN Business

Updated 6:22 p.m. ET, December 1, 2021
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9:49 a.m. ET, December 1, 2021

ADP Employment Report: 534,000 jobs added in November

From CNN Business' Anneken Tappe

A ''Now Hiring" sign hangs above the entrance to a McDonald's restaurant on November 05, 2021 in Miami Beach, Florida. 
A ''Now Hiring" sign hangs above the entrance to a McDonald's restaurant on November 05, 2021 in Miami Beach, Florida.  (Joe Raedle/Getty Images)

It's jobs week, and as usual we're kicking off with the ADP Employment Report.

A total of 534,000 jobs were added to private payrolls in November, slightly outpacing economists' expectations.

Large companies added the most jobs last month. Leisure and hospitality, as well as professional and business services, added the most jobs by sector.

The report shows there's "good potential for the rest of the year," ADP Chief Economist Nela Richardson told reporters on a call.

"Some of the bottlenecks we talked about this summer have receded," Richardson said, pointing at generous unemployment benefits.

Meanwhile the remarkable rally in the stock market and home prices "has given some higher income people options. We already saw a large portion of the Boomer workforce retiring. And they're in a better position now," she added.

That said, the recovering US labor market is also still struggling with a shortage of workers. Meanwhile there are still concerns about child care issues, as well as the pandemic as a whole. And the new Omicron virus variant isn't helping.

Richardson said Omicron's "impact will depend on a whole host of factors. But what we can say is in terms of the health conditions on the ground, we has a country are in a much better position than last year when case counts were skyrocketing and very few people were vaccinated."

9:53 a.m. ET, December 1, 2021

Powell and Yellen are back on the Hill today

From CNN Business' Anneken Tappe

U.S. Treasury Secretary Janet Yellen (L) and Federal Reserve Board Chairman Jerome Powell (R) testified during a hearing before Senate Banking, Housing and Urban Affairs Committee on Capitol Hill yesterday in Washington, DC.
U.S. Treasury Secretary Janet Yellen (L) and Federal Reserve Board Chairman Jerome Powell (R) testified during a hearing before Senate Banking, Housing and Urban Affairs Committee on Capitol Hill yesterday in Washington, DC. (Alex Wong/Getty Images)

Federal Reserve Chairman Jerome Powell and Treasury Secretary Janet Yellen are back to testifying in Washington today. After yesterday's visit to the Senate Banking Committee, they will today testify before the House Financial Services Committee. No doubt Omicron and the Fed's path to policy normalization will come up again.

The latter was the big news yesterday: The central bank might end its pandemic-era stimulus sooner than expected, Powell said on Tuesday.

The Fed announced a tapering of its monthly asset purchases during its monetary policy update at the start of November, cutting bond buying by $10 billion for Treasury securities and $5 billion for agency mortgage-backed securities.

But this pace might no longer be appropriate, Powell suggested.

"At this point the economy is very strong and inflationary pressures are high and it is therefore appropriate in my view to consider wrapping up the taper of our asset purchases ... perhaps a few months sooner," Powell said.

Read more about the Fed's tapering timeline here.

8:40 a.m. ET, December 1, 2021

Stock futures are sharply higher

From CNN Business' Anneken Tappe

It looks like a strong start to the day on Wall Street where stock futures are rallying higher.

Futures for the S&P 500, the broadest gauge of the US equity market, are up 1.2%, while Nasdaq Composite futures are up 1.3%.

Futures for the Dow are lagging behind a little, up 0.8%, or some 280 points.

It's been a rollercoaster in the market since the identification of the Omicron variant of the coronavirus last week, sparking memories of the highly infectious Delta variant which put a damper on the recovery over summer.

Even though information is thin at this point, investors are trying to assess what Omicron could mean for the economy and their portfolios.