The latest ADP National Employment Report, released this morning, indicated that U.S. companies slashed 79,000 private-sector jobs in June the largest drop since November 2002. After adding in approximately 20,000 government jobs created each month, the report suggests a 59,000 drop in nonfarm payrolls in June in line with economists' expectations for a loss of 50,000 jobs when the Bureau of Labor Statistics releases its unemployment report for June tomorrow.

Delving into the specifics of the report, employment in the goods-producing sector was the worst hit in June, dropping by 76,000. Meanwhile, factory jobs shed 44,000, while 34,000 construction jobs were lost last month. Employment in the services sector declined by 3,000, marking the first decline in roughly 5.5 years.

ADP also downwardly revised May job gains to 25,000 from the gain of 40,000 it had reported originally.