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3 Sector ETFs & Stocks to Bet on November Jobs Data
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The November U.S. jobs report showed continued resilience in the labor market. U.S. nonfarm payrolls grew by 199,000 last month, the Labor Department said Friday. That was more than the 190,000 jobs anticipated by economists surveyed by Dow Jones, and better than the October gain of 150,000, per CNBC.
The change in total nonfarm payroll employment for September was revised down by 35,000, from +297,000 to +262,000, and the change for October remained at +150,000. With these revisions, employment in September and October combined is 35,000 lower than previously reported.
The unemployment rate in the United States declined to 3.7% in November of 2023 from 3.9% in the previous month, marking the lowest level since July, and firmly under market expectations that it would remain unchanged at 3.9%.
In November, average hourly earnings for all employees on private nonfarm payrolls rose by 12 cents, or 0.4%, to $34.10. Over the past 12 months, average hourly earnings have increased by 4%. Below, we have highlighted some of the sectors that will likely see smooth trading in the days ahead in light of the November jobs data.
Sectors in Focus
Healthcare
Employment in the healthcare industry increased by 77,000 in jobs, above the average monthly gain of 54,000 over the past one year. Job gains occurred in ambulatory health care services (+36,000), nursing and residential care facilities (+17,000), and hospitals (+24,000).
Health Care Select Sector SPDR ETF (XLV - Free Report) can be played to tap the moderate momentum. Community Health Systems (CYH - Free Report) , which has a Zacks Rank #3 (Hold) deserves a mention. It is a leading operator of general acute care hospitals and outpatient facilities in communities across the United States.
Manufacturing
In November, employment in manufacturing (+28,000) saw notable growth, reflecting an increase of 30,000 in motor vehicles and parts as workers returned from a strike.
Investors can keep a watch on the price movement of First Trust S-Network Future Vehicles & Technology ETF (CARZ - Free Report) . The underlying S-Network Electric & Future Vehicle Ecosystem Index constituents are chosen by selecting the eligible Pure-Play companies in descending order of float-adjusted market capitalization until 100 constituents have been selected.
As far as the stock is concerned, Zacks Rank #2 PACCAR (PCAR - Free Report) can be played. It is a leading manufacturer of heavy-duty trucks in the world and has substantial manufacturing exposure to light/medium trucks.
Leisure
Employment in leisure and hospitality rose by 40,000, helped by job creation in food services and drinking places. The industry had gained an average of 51,000 jobs per month over the past one year.
The data makes AdvisorShares Restaurant ETF (EATZ - Free Report) a timely investment. The Zacks Rank #2 (Buy) FAT Brands (FAT - Free Report) , is a multi-brand, restaurant franchising company. It develops, markets and acquires restaurant. The company primarily operates Fatburger, Buffalo's Cafe, Buffalo's Express and the Ponderosa & Bonanza Steakhouse concepts.
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3 Sector ETFs & Stocks to Bet on November Jobs Data
The November U.S. jobs report showed continued resilience in the labor market. U.S. nonfarm payrolls grew by 199,000 last month, the Labor Department said Friday. That was more than the 190,000 jobs anticipated by economists surveyed by Dow Jones, and better than the October gain of 150,000, per CNBC.
The change in total nonfarm payroll employment for September was revised down by 35,000, from +297,000 to +262,000, and the change for October remained at +150,000. With these revisions, employment in September and October combined is 35,000 lower than previously reported.
The unemployment rate in the United States declined to 3.7% in November of 2023 from 3.9% in the previous month, marking the lowest level since July, and firmly under market expectations that it would remain unchanged at 3.9%.
In November, average hourly earnings for all employees on private nonfarm payrolls rose by 12 cents, or 0.4%, to $34.10. Over the past 12 months, average hourly earnings have increased by 4%. Below, we have highlighted some of the sectors that will likely see smooth trading in the days ahead in light of the November jobs data.
Sectors in Focus
Healthcare
Employment in the healthcare industry increased by 77,000 in jobs, above the average monthly gain of 54,000 over the past one year. Job gains occurred in ambulatory health care services (+36,000), nursing and residential care facilities (+17,000), and hospitals (+24,000).
Health Care Select Sector SPDR ETF (XLV - Free Report) can be played to tap the moderate momentum. Community Health Systems (CYH - Free Report) , which has a Zacks Rank #3 (Hold) deserves a mention. It is a leading operator of general acute care hospitals and outpatient facilities in communities across the United States.
Manufacturing
In November, employment in manufacturing (+28,000) saw notable growth, reflecting an increase of 30,000 in motor vehicles and parts as workers returned from a strike.
Investors can keep a watch on the price movement of First Trust S-Network Future Vehicles & Technology ETF (CARZ - Free Report) . The underlying S-Network Electric & Future Vehicle Ecosystem Index constituents are chosen by selecting the eligible Pure-Play companies in descending order of float-adjusted market capitalization until 100 constituents have been selected.
As far as the stock is concerned, Zacks Rank #2 PACCAR (PCAR - Free Report) can be played. It is a leading manufacturer of heavy-duty trucks in the world and has substantial manufacturing exposure to light/medium trucks.
Leisure
Employment in leisure and hospitality rose by 40,000, helped by job creation in food services and drinking places. The industry had gained an average of 51,000 jobs per month over the past one year.
The data makes AdvisorShares Restaurant ETF (EATZ - Free Report) a timely investment. The Zacks Rank #2 (Buy) FAT Brands (FAT - Free Report) , is a multi-brand, restaurant franchising company. It develops, markets and acquires restaurant. The company primarily operates Fatburger, Buffalo's Cafe, Buffalo's Express and the Ponderosa & Bonanza Steakhouse concepts.