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5 Sector ETFs That Show Promise After June Jobs Data
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The U.S. economy added 372,000 jobs in June of 2022, breezing past market forecasts of 268,000 and only slightly below a downwardly revised 384,000 in May. Figures came in line with the average monthly gain of 383,000 over the prior three months, pointing to a solid jobs market.
June figures indicate that nonfarm employment ae down by only 524,000 or 0.3%, from its pre-pandemic level in February 2020. Private-sector employment has recovered the job losses due to the pandemic and is 140,000 higher than in February 2020.
In June, average hourly earnings for all employees on private nonfarm payrolls rose by 10 cents, or 0.3%, to $32.08. Over the past 12 months, average hourly earnings have increased by 5.1%. In June, average hourly earnings of private-sector production and nonsupervisory employees increased by 13 cents, or 0.5% to $27.45.
Below, we have highlighted some of the sectors that will likely see smooth trading in the days ahead in light of the June jobs data.
Leisure
Last month, leisure and hospitality employment grew by 67,000, thanks mainly growth continued in food services and drinking places (+41,000). Employment in leisure and hospitality is still down by 7.8% 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.
Transportation
Employment in transportation and warehousing was decent in February (+36,000). Over the month, job gains continued in warehousing and storage (+18,000) and air transportation (+8,000). SPDR S&P Transportation ETF (XTN - Free Report) has a Zacks Rank #2 with a High risk outlook.
Manufacturing
Employment in manufacturing (+29,000) was upbeat in June. Employment in manufacturing decreased by 29,000 from its level in February 2020. Industrial Select Sector SPDR ETF (XLI - Free Report) has a Zacks Rank #2 (Buy).
Healthcare
Employment in the healthcare industry increased by 57,000 in June. Job gains occurred in ambulatory health care services (+28,000), hospitals (+21,000), and nursing and residential care facilities (+8,000). Employment in health care is down by 1.1%, from its level in February 2020. The Zacks Rank #1 fund Health Care Select Sector SPDR ETF (XLV - Free Report) can be played to tap the momentum.
Mining
Employment in mining rose by 5,000 in June, reflecting an uptick in oil and gas extraction (+2,000). Mining employment is now up by 86,000 from a recent low in February 2021. SPDR S&P Metals & Mining ETF (XME - Free Report) can thus be considered for a play.
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5 Sector ETFs That Show Promise After June Jobs Data
The U.S. economy added 372,000 jobs in June of 2022, breezing past market forecasts of 268,000 and only slightly below a downwardly revised 384,000 in May. Figures came in line with the average monthly gain of 383,000 over the prior three months, pointing to a solid jobs market.
June figures indicate that nonfarm employment ae down by only 524,000 or 0.3%, from its pre-pandemic level in February 2020. Private-sector employment has recovered the job losses due to the pandemic and is 140,000 higher than in February 2020.
In June, average hourly earnings for all employees on private nonfarm payrolls rose by 10 cents, or 0.3%, to $32.08. Over the past 12 months, average hourly earnings have increased by 5.1%. In June, average hourly earnings of private-sector production and nonsupervisory employees increased by 13 cents, or 0.5% to $27.45.
Below, we have highlighted some of the sectors that will likely see smooth trading in the days ahead in light of the June jobs data.
Leisure
Last month, leisure and hospitality employment grew by 67,000, thanks mainly growth continued in food services and drinking places (+41,000). Employment in leisure and hospitality is still down by 7.8% 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.
Transportation
Employment in transportation and warehousing was decent in February (+36,000). Over the month, job gains continued in warehousing and storage (+18,000) and air transportation (+8,000). SPDR S&P Transportation ETF (XTN - Free Report) has a Zacks Rank #2 with a High risk outlook.
Manufacturing
Employment in manufacturing (+29,000) was upbeat in June. Employment in manufacturing decreased by 29,000 from its level in February 2020. Industrial Select Sector SPDR ETF (XLI - Free Report) has a Zacks Rank #2 (Buy).
Healthcare
Employment in the healthcare industry increased by 57,000 in June. Job gains occurred in ambulatory health care services (+28,000), hospitals (+21,000), and nursing and residential care facilities (+8,000). Employment in health care is down by 1.1%, from its level in February 2020. The Zacks Rank #1 fund Health Care Select Sector SPDR ETF (XLV - Free Report) can be played to tap the momentum.
Mining
Employment in mining rose by 5,000 in June, reflecting an uptick in oil and gas extraction (+2,000). Mining employment is now up by 86,000 from a recent low in February 2021. SPDR S&P Metals & Mining ETF (XME - Free Report) can thus be considered for a play.