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3 Sector ETFs & Stocks to Play Robust January Jobs Data
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The U.S. economy added 467,000 jobs in January 2021, beating market expectations of a rise of 150,000 thanks to easing business restrictions amid the reopening of economies and vaccine distribution from multiple makers. January figures came as a huge surprise as the omicron coronavirus variant weighed on the jobs market. The ADP report also showed that private companies cut 301,000 jobs.
The average workweek for all employees on private nonfarm payrolls dropped by 0.2 hours to 34.5 hours in January. The average hourly earnings increased 23 cents to $31.63. Over the past 12 months, the average hourly earnings increased by 5.7%. In January, the average hourly earnings of private-sector production and nonsupervisory employees rose by 17 cents to $26.92.
Below, we have highlighted some of the sectors that will likely see smooth trading in the days ahead in light of the January jobs data.
Leisure
Last month, leisure and hospitality employment grew by 151,000, thanks mainly to the steady reopening of the economy. Gains mainly occurred in food services and drinking places (+108,000). Job gains were also logged in accommodation (+23,000). Employment in leisure and hospitality is still down by 10.3% from February 2020.
The data makes Invesco Dynamic Leisure and Entertainment ETF (PEJ - Free Report) a timely investment. The fund has a Zacks Rank #3 (Hold) with a High risk outlook.
The Zacks Rank #2 (Buy) First Watch Restaurant Group Inc. (FWRG - Free Report) is a daytime dining restaurant concept serving made-to-order breakfast, brunch and lunch using fresh ingredients.
Retail
Last month, retail employment grew by 61,000 and was up by 61,000 jobs too from February 2020. Job growth was palpable in general merchandise stores (+29,000), health and personal care stores (+11,000), sporting goods, hobby, book, and music stores (+7,000) and building material and garden supply stores (+6,000).
The data makes SPDR S&P Retail ETF (XRT - Free Report) a timely investment. The fund has a Zacks Rank #1 (Strong Buy) with a Medium risk outlook.
The Zacks Rank #1 DICK'S Sporting Goods (DKS - Free Report) can be a nice pick here. The company operates as a major omni-channel sporting goods retailer, offering athletic shoes, apparel, accessories and a broad selection of outdoor and athletic equipment for team sports.
Transpiration & Warehousing
Employment in transportation and warehousing rose by 54,000 in January and was 542,000 higher from February 2020. In January, job gains occurred in couriers and messengers (+21,000), warehousing and storage (+13,000), truck transportation (+8,000), and air transportation (+7,000). All four of these component industries exceeded their February 2020 employment levels, with the maximum gainers being warehousing and storage (+410,000) and couriers and messengers (+236,000).
FedEx (FDX - Free Report) is a key winner here. Zacks Rank #2 FedEx is the leader in global express delivery services. FedEx provides a broad portfolio of transportation, e-commerce and business services through companies competing collectively, operating independently and managed collaboratively, under the FedEx brand.
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3 Sector ETFs & Stocks to Play Robust January Jobs Data
The U.S. economy added 467,000 jobs in January 2021, beating market expectations of a rise of 150,000 thanks to easing business restrictions amid the reopening of economies and vaccine distribution from multiple makers. January figures came as a huge surprise as the omicron coronavirus variant weighed on the jobs market. The ADP report also showed that private companies cut 301,000 jobs.
The average workweek for all employees on private nonfarm payrolls dropped by 0.2 hours to 34.5 hours in January. The average hourly earnings increased 23 cents to $31.63. Over the past 12 months, the average hourly earnings increased by 5.7%. In January, the average hourly earnings of private-sector production and nonsupervisory employees rose by 17 cents to $26.92.
Below, we have highlighted some of the sectors that will likely see smooth trading in the days ahead in light of the January jobs data.
Leisure
Last month, leisure and hospitality employment grew by 151,000, thanks mainly to the steady reopening of the economy. Gains mainly occurred in food services and drinking places (+108,000). Job gains were also logged in accommodation (+23,000). Employment in leisure and hospitality is still down by 10.3% from February 2020.
The data makes Invesco Dynamic Leisure and Entertainment ETF (PEJ - Free Report) a timely investment. The fund has a Zacks Rank #3 (Hold) with a High risk outlook.
The Zacks Rank #2 (Buy) First Watch Restaurant Group Inc. (FWRG - Free Report) is a daytime dining restaurant concept serving made-to-order breakfast, brunch and lunch using fresh ingredients.
Retail
Last month, retail employment grew by 61,000 and was up by 61,000 jobs too from February 2020. Job growth was palpable in general merchandise stores (+29,000), health and personal care stores (+11,000), sporting goods, hobby, book, and music stores (+7,000) and building material and garden supply stores (+6,000).
The data makes SPDR S&P Retail ETF (XRT - Free Report) a timely investment. The fund has a Zacks Rank #1 (Strong Buy) with a Medium risk outlook.
The Zacks Rank #1 DICK'S Sporting Goods (DKS - Free Report) can be a nice pick here. The company operates as a major omni-channel sporting goods retailer, offering athletic shoes, apparel, accessories and a broad selection of outdoor and athletic equipment for team sports.
Transpiration & Warehousing
Employment in transportation and warehousing rose by 54,000 in January and was 542,000 higher from February 2020. In January, job gains occurred in couriers and messengers (+21,000), warehousing and storage (+13,000), truck transportation (+8,000), and air transportation (+7,000). All four of these component industries exceeded their February 2020 employment levels, with the maximum gainers being warehousing and storage (+410,000) and couriers and messengers (+236,000).
Zacks Rank #2 iShares US Transportation ETF (IYT - Free Report) is a great bet out here (read: 5 ETFs to Tap the Four-Decade Strongest U.S. Economy).
FedEx (FDX - Free Report) is a key winner here. Zacks Rank #2 FedEx is the leader in global express delivery services. FedEx provides a broad portfolio of transportation, e-commerce and business services through companies competing collectively, operating independently and managed collaboratively, under the FedEx brand.