The comprehensive MBSQuoteline Glossary gives you simple definitions for tough market issues and economic jargon. Impress your clients with insight into economic reports, including where they come from, what they are, when they come out and, most importantly, why they matter. What is PCE and why does the Fed watch it so closely? What is the "roll" and how does it affect pricing? What are indirect bidders in a Treasury auction and how do they affect interest rates? Learn answers to these questions and more.
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Demo based on market events from: Thursday January 28, 2016
ADP Employment Change
The ADP National Employment ReportĀ® is a measure of nonfarm private employment, based on a subset of aggregated and anonymous payroll data that represents approximately 392,000 of ADP's 500,000 U.S. business clients and roughly 24 million employees working in all 19 of the major North American Industrial Classification (NAICS) private industrial sectors. The ADP National Employment Report was developed to help meet the need for additional timely and accurate estimates of short-term movements in the national labor market among economists, financial professionals, and government policy-makers. Because ADP pays 1-in-6 private sector employees in the United States every pay period across a broad range of industries, firm sizes, and geographies, it has a unique and significant perspective on the U.S. labor market.
Advance GDP
Who: Commerce Department
When: First Month of each Quarter
What: GDP (Gross Domestic Product) is a measure of the total production and consumption of goods and services in the US. GDP has two complementary measures: one based on income and the other on expenditures. The two measures should be equal but the problems with the data collection have left some discrepancies. A deflator is used to convert current prices into a constant-dollar GDP figure. The GDP report gives a complete picture of the state of the economy as well as estimates for future output based on supply and demand.

Advance GDP is the initial reading each quarter. As more data is collected, the Preliminary GDP release reflects the first revision. The Final GDP report for the prior quarter is released near the end of the current quarter.
Why: GDP is a significant report for several reasons. It is the most encompassing picture of economic activity and when paired with the employment report gives a picture of productivity growth. The data is used to define business cycle peaks and troughs. Higher GDP points to accelerated inflation while lower GDP indicates a weak economy.