INSTANT VIEW: Private sector cut 8,000 jobs in September

NEW YORK (Reuters) - U.S. private employers cut a surprisingly low 8,000 jobs in September, a report by a private employment service said on Wednesday.

KEY POINTS: * ADP Employer Services also said it revised the number of jobs lost in August to 37,000 from the originally reported loss of 33,000. * The median of estimates from 29 economists surveyed by Reuters was for the ADP report to show 60,000 private-sector jobs were lost in September. * The ADP Employer Services report was jointly developed with Macroeconomic Advisers LLC.

COMMENTS:

WIN THIN, CURRENCY STRATEGIST, BROWN BROTHERS HARRIMAN, NEW YORK:

"We had a better-than-expected reading on ADP, but I don't think people will get terribly excited about it. The series hasn't been very accurate in predicting the government payroll figures and investors seem to be very focused right now on the bailout voting. The dollar is fairly bid this morning and people will continue to buy the currency as long as economic numbers in Europe keep coming very weak."

JOE SALUZZI, CO-MANAGER OF TRADING, THEMIS TRADING, CHATHAM, NEW JERSEY:

"The numbers are better than expected, but I haven't looked into them with much detail. The (stock) market won't care about this number though, it's more about the bigger picture with the bailout.

"On the surface the report looks good, but the market is down because of the run up yesterday. It won't matter today, Friday's number will matter more, but today, all eyes are on Washington."

T.J. MARTA, FIXED INCOME STRATEGIST, RBC CAPITAL MARKETS, NEW YORK:

"In the ADP data where we saw job losses was in medium and large firms. It's your small firms that are still employing people: they added jobs.

"Are these people who are being downsized and converting themselves to small outside consultancies, or is it that the trickle down of the credit freeze hasn't hit the small firms yet?

"Short term funding markets don't exist: this is like a blocked artery."

CRAIG PECKHAM, EQUITY TRADING STRATEGIST, JEFFERIES & COMPANY, NEW YORK:

"At first blush this is a surprisingly positive report relative to some of the worst case scenarios that we've been seeing. It's important to caveat that with (the fact) we have seen some deviation between where the ADP numbers have been initially reported at and the data coming out of the BLS.

"It should help futures, because the overriding concern today is more how bad is the economy rather than just what are the odds of the TARP plan being passed, and this should take some of the bearishness out of the economic picture."

MARKET REACTION: STOCKS: U.S. stock index futures hold session losses. BONDS: Treasury prices steady at higher levels. DOLLAR: U.S. dollar holds gains against euro and yen