We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
5 Sector ETFs That Show Promise After August Jobs Data
Read MoreHide Full Article
The U.S. economy added 315,000 jobs in August of 2022, slightly below the Dow Jones estimate for 318,000 and way lower than the 526,000 jobs created in July and the lowest monthly gain since April 2021.
The unemployment rate increased to 3.7%, two-tenths of a percentage point higher than expectations, largely due to a gain in the labor force participation rate to 62.4%. Wages continued to increase, though slightly less than expectations. Average hourly earnings rose 0.3% for the month and 5.2% from a year ago, both 0.1 percentage point below estimates.
Below, we have highlighted some of the sectors that will likely see smooth trading in the days ahead in light of the August jobs data.
Healthcare
Employment in the healthcare industry increased by 48,000 in August. Job gains occurred in physicians (+15,000), hospitals (+15,000), and nursing and residential care facilities (+12,000). Employment in health care is down by 0.2%, from its level in February 2020. Health care has added 412,000 jobs over the year. The Zacks Rank #1 fund Health Care Select Sector SPDR ETF (XLV - Free Report) can be played to tap the momentum.
Retail
Employment in retail trade was decent in August (+44,000). About 422,000 jobs were created over the past 12 months. In August, employment rose in general merchandise stores (+15,000), food and beverage stores (+15,000), health and personal care stores (+10,000), and building material and garden supply stores (+7,000). SPDR S&P Retail ETF (XRT - Free Report) has a Zacks Rank #2 with a Medium risk outlook deserves a look.
Manufacturing
Employment in manufacturing (+22,000) was upbeat in August. Employment in manufacturing increased by 461,000 over the past one year. Industrial Select Sector SPDR ETF (XLI - Free Report) has a Zacks Rank #2 with a Medium risk outlook.
Mining
Employment in mining rose by 6,000 in August, reflecting a gain in support activities for mining (+7,000). Over the year, mining has added 68,000 jobs. SPDR S&P Metals & Mining ETF (XME - Free Report) can thus be considered for a play.
Leisure
Employment in leisure and hospitality changed little in August (+31,000), following average monthly gains of 90,000 in the first seven months of the year. Employment in leisure and hospitality is below its February 2020 level by 1.2 million, or 7.2%.
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.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
5 Sector ETFs That Show Promise After August Jobs Data
The U.S. economy added 315,000 jobs in August of 2022, slightly below the Dow Jones estimate for 318,000 and way lower than the 526,000 jobs created in July and the lowest monthly gain since April 2021.
The unemployment rate increased to 3.7%, two-tenths of a percentage point higher than expectations, largely due to a gain in the labor force participation rate to 62.4%. Wages continued to increase, though slightly less than expectations. Average hourly earnings rose 0.3% for the month and 5.2% from a year ago, both 0.1 percentage point below estimates.
Below, we have highlighted some of the sectors that will likely see smooth trading in the days ahead in light of the August jobs data.
Healthcare
Employment in the healthcare industry increased by 48,000 in August. Job gains occurred in physicians (+15,000), hospitals (+15,000), and nursing and residential care facilities (+12,000). Employment in health care is down by 0.2%, from its level in February 2020. Health care has added 412,000 jobs over the year. The Zacks Rank #1 fund Health Care Select Sector SPDR ETF (XLV - Free Report) can be played to tap the momentum.
Retail
Employment in retail trade was decent in August (+44,000). About 422,000 jobs were created over the past 12 months. In August, employment rose in general merchandise stores (+15,000), food and beverage stores (+15,000), health and personal care stores (+10,000), and building material and garden supply stores (+7,000). SPDR S&P Retail ETF (XRT - Free Report) has a Zacks Rank #2 with a Medium risk outlook deserves a look.
Manufacturing
Employment in manufacturing (+22,000) was upbeat in August. Employment in manufacturing increased by 461,000 over the past one year. Industrial Select Sector SPDR ETF (XLI - Free Report) has a Zacks Rank #2 with a Medium risk outlook.
Mining
Employment in mining rose by 6,000 in August, reflecting a gain in support activities for mining (+7,000). Over the year, mining has added 68,000 jobs. SPDR S&P Metals & Mining ETF (XME - Free Report) can thus be considered for a play.
Leisure
Employment in leisure and hospitality changed little in August (+31,000), following average monthly gains of 90,000 in the first seven months of the year. Employment in leisure and hospitality is below its February 2020 level by 1.2 million, or 7.2%.
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.