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3 Sector ETFs & Stocks to Bet on Upbeat September Jobs Data
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The U.S. economy added 336,000 jobs in September 2023, well above an upwardly revised 227,000 in August, and beating market forecasts of 170,000. It marked the strongest job gain in eight months and well above the 70K-100K needed per month to maintain the growth in the working-age population, per tradingeconomics.
The unemployment rate was 3.8%, compared to the forecast for 3.7%. Wage increases, however, were softer than expected, with average hourly earnings up 0.2% for the month and 4.2% from a year ago, compared to respective estimates for 0.3% and 4.3%.
In September, average hourly earnings for all employees on private nonfarm payrolls increased by 7 cents, or 0.2%, to $33.88. Over the past 12 months, average hourly earnings have increased by 4.2%. In September, average hourly earnings of private-sector production and nonsupervisory employees rose by 6 cents, or 0.2%, to $29.06.
Below, we have highlighted some of the sectors that will likely see smooth trading in the days ahead in light of the September jobs data.
Sectors in Focus
Healthcare
Employment in the healthcare industry increased by 41,000 in jobs, compared with the average monthly gain of 53,000 over the prior 12 months. Over the month, employment continued to go up in ambulatory health care services (+24,000), hospitals (+8,000), and nursing and residential care facilities (+8,000).
Health Care Select Sector SPDR ETF (XLV - Free Report) can be played to tap the moderate momentum. HCA Healthcare (HCA - Free Report) , which has a Zacks Rank #3 (Hold) deserves a mention. It is the largest non-governmental operator of acute care hospitals in the United States.
Leisure
Employment in leisure and hospitality rose by 96,000, above the average monthly gain of 61,000 over the past one year. Employment in food services and drinking places rose by 61,000 over the month and has returned to its pre-pandemic February 2020 level. Accommodation employment continued to increase over the month (+16,000) but remains below its February 2020 level by 217,000, or 10.3%.
The data makes Invesco Dynamic Leisure and Entertainment ETF (PEJ - Free Report) a timely investment. The Zacks Rank #1 Carrols Restaurant Group (TAST - Free Report) is the largest BURGER KING franchisee in the United States, with over 800 restaurants.
Transportation
In September, employment in transportation and warehousing changed little (+9,000). Truck transportation has witnessed 9,000 job growth, following a decline of 25,000 in August that largely reflected a business closure. Air transportation added 5,000 jobs in September. Employment in transportation and warehousing has shown little net change in the past one year.
Investors can keep a watch on the price movement of U.S. Global Jets ETF (JETS - Free Report) . The underlying U.S. Global Jets Index tracks the performance of Airline Companies across the globe with an emphasis on domestic passenger airlines.
As far as the stock is concerned, Zacks Rank #3 United Airlines (UAL - Free Report) can be played. The carrier changed its name from United Continental Holdings to United Airlines Holdings in June 2019. It is the holding company for both United Airlines and Continental Airlines.
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3 Sector ETFs & Stocks to Bet on Upbeat September Jobs Data
The U.S. economy added 336,000 jobs in September 2023, well above an upwardly revised 227,000 in August, and beating market forecasts of 170,000. It marked the strongest job gain in eight months and well above the 70K-100K needed per month to maintain the growth in the working-age population, per tradingeconomics.
The unemployment rate was 3.8%, compared to the forecast for 3.7%. Wage increases, however, were softer than expected, with average hourly earnings up 0.2% for the month and 4.2% from a year ago, compared to respective estimates for 0.3% and 4.3%.
In September, average hourly earnings for all employees on private nonfarm payrolls increased by 7 cents, or 0.2%, to $33.88. Over the past 12 months, average hourly earnings have increased by 4.2%. In September, average hourly earnings of private-sector production and nonsupervisory employees rose by 6 cents, or 0.2%, to $29.06.
Below, we have highlighted some of the sectors that will likely see smooth trading in the days ahead in light of the September jobs data.
Sectors in Focus
Healthcare
Employment in the healthcare industry increased by 41,000 in jobs, compared with the average monthly gain of 53,000 over the prior 12 months. Over the month, employment continued to go up in ambulatory health care services (+24,000), hospitals (+8,000), and nursing and residential care facilities (+8,000).
Health Care Select Sector SPDR ETF (XLV - Free Report) can be played to tap the moderate momentum. HCA Healthcare (HCA - Free Report) , which has a Zacks Rank #3 (Hold) deserves a mention. It is the largest non-governmental operator of acute care hospitals in the United States.
Leisure
Employment in leisure and hospitality rose by 96,000, above the average monthly gain of 61,000 over the past one year. Employment in food services and drinking places rose by 61,000 over the month and has returned to its pre-pandemic February 2020 level. Accommodation employment continued to increase over the month (+16,000) but remains below its February 2020 level by 217,000, or 10.3%.
The data makes Invesco Dynamic Leisure and Entertainment ETF (PEJ - Free Report) a timely investment. The Zacks Rank #1 Carrols Restaurant Group (TAST - Free Report) is the largest BURGER KING franchisee in the United States, with over 800 restaurants.
Transportation
In September, employment in transportation and warehousing changed little (+9,000). Truck transportation has witnessed 9,000 job growth, following a decline of 25,000 in August that largely reflected a business closure. Air transportation added 5,000 jobs in September. Employment in transportation and warehousing has shown little net change in the past one year.
Investors can keep a watch on the price movement of U.S. Global Jets ETF (JETS - Free Report) . The underlying U.S. Global Jets Index tracks the performance of Airline Companies across the globe with an emphasis on domestic passenger airlines.
As far as the stock is concerned, Zacks Rank #3 United Airlines (UAL - Free Report) can be played. The carrier changed its name from United Continental Holdings to United Airlines Holdings in June 2019. It is the holding company for both United Airlines and Continental Airlines.