US: Layoffs fall in February, another sign pointing to a strong NFP

The number of Americans filing for unemployment benefits last week rose by 20,000 to a seasonally adjusted 243,000 for the week ended March 4, according to the report published by the Labor Department on Thursday.However, a separate report from global outplacement firm Challenger, Gray & Christmas showed that in February, U.S. employers announced plans to cut 36,957 jobs, a 40% decline compared to February 2016.

Yesterday, "February proved to be an incredibly strong month for employment with increases we have not seen in years," Ahu Yildirmaz, vice president and co-head of the ADP Research Institute, said in a statement following the strong ADP report (298K). Furthermore, "We know employers are optimistic about the future economy, and they're willing to hire new employees at this point in time," Challenger vice president Andrew Challenger told CNBC's "Squawk Box."

Tomorrow's nonfarm payrolls data is expected to show a gain of 190,000 from January's 227,000. Nevertheless, ADP and Challenger reports show that the probability for a surprise on the upside has increased.