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April Jobs Data Put Focus on These Sector ETFs & Stocks
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Key Takeaways
Healthcare hiring stayed strong in April, keeping XLV and HCA in focus.
Transportation jobs rose on courier demand, supporting IYT and DAL.
Retail hiring improved, putting consumer ETF XLY and Amazon in focus.
The U.S. economy added 115,000 nonfarm jobs in April, topping economists’ expectations of 55,000, though falling short of the revised 185,000 gain recorded in March, as quoted on CNBC. The latest data pointed to a labor market that remains resilient but continues to lose momentum compared to the rapid hiring pace seen in earlier years. The unemployment rate held steady at 4.3%.
Wage Growth Softens
Average hourly earnings rose 0.2% in April, below the expected 0.3% increase, as quoted on CNBC. On an annual basis, wages climbed 3.6%, also missing forecasts of 3.8%. The softer wage growth data is a concerning factor.
Sector ETFs in Focus
Below, we have highlighted some of the sectors and their related exchange-traded funds (ETFs) that will likely see smooth trading in the days ahead in light of the April jobs data.
Healthcare
Healthcare remained the strongest area for job creation, adding 37,000 positions during the month. Job growth was in line with the average monthly gain of 32,000 over the past one year. Over the month, job gains occurred in nursing and residential care facilities (+15,000) and home health care services (+11,000).
Zacks Rank #1 (Strong Buy) Health Care Select Sector SPDR ETF (XLV - Free Report) can be played to tap the moderate momentum. The fund has 30% exposure to the pharma industry, followed by 18.53% exposure to the healthcare providers & services industry, about 18.14% focus on Biotechnology, and 17.18% focus on the Health Care Equipment & Supplies sector.
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. The company has a trailing four-quarter earnings surprise of 10.56%, on average.
Transportation
Employment in the sector added 30,000 in April, thanks to a gain in couriers and messengers (+38,000). However, employment in transportation and warehousing is down by 105,000 since reaching a peak in February 2025.
iShares U.S. Transportation ETF (IYT - Free Report) can thus be considered for a play. The fund measures the performance of companies from the Industrial Transportation, Airline and General Industrial Services industries of the U.S. equity market.
FedEx Corp (FDX - Free Report) , a Zacks Rank #2 stock is the leader in global express delivery services.
Retail
Retail trade added 22,000 jobs in April. Employment increased in warehouse clubs, supercenters, and other general merchandise retailers (+18,000) and in building material and garden equipment and supplies dealers (+13,000). Retail trade employment remained flat over the prior 12 months.
State Street Consumer Discretionary Select Sector SPDR ETF (XLY - Free Report) seeks to provide an effective representation of the consumer discretionary sector of the S&P 500 Index.
Amazon.com (AMZN - Free Report) is one of the largest e-commerce providers, with sprawling operations in North America, now spreading across the globe.
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April Jobs Data Put Focus on These Sector ETFs & Stocks
Key Takeaways
The U.S. economy added 115,000 nonfarm jobs in April, topping economists’ expectations of 55,000, though falling short of the revised 185,000 gain recorded in March, as quoted on CNBC. The latest data pointed to a labor market that remains resilient but continues to lose momentum compared to the rapid hiring pace seen in earlier years. The unemployment rate held steady at 4.3%.
Wage Growth Softens
Average hourly earnings rose 0.2% in April, below the expected 0.3% increase, as quoted on CNBC. On an annual basis, wages climbed 3.6%, also missing forecasts of 3.8%. The softer wage growth data is a concerning factor.
Sector ETFs in Focus
Below, we have highlighted some of the sectors and their related exchange-traded funds (ETFs) that will likely see smooth trading in the days ahead in light of the April jobs data.
Healthcare
Healthcare remained the strongest area for job creation, adding 37,000 positions during the month. Job growth was in line with the average monthly gain of 32,000 over the past one year. Over the month, job gains occurred in nursing and residential care facilities (+15,000) and home health care services (+11,000).
Zacks Rank #1 (Strong Buy) Health Care Select Sector SPDR ETF (XLV - Free Report) can be played to tap the moderate momentum. The fund has 30% exposure to the pharma industry, followed by 18.53% exposure to the healthcare providers & services industry, about 18.14% focus on Biotechnology, and 17.18% focus on the Health Care Equipment & Supplies sector.
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. The company has a trailing four-quarter earnings surprise of 10.56%, on average.
Transportation
Employment in the sector added 30,000 in April, thanks to a gain in couriers and messengers (+38,000). However, employment in transportation and warehousing is down by 105,000 since reaching a peak in February 2025.
iShares U.S. Transportation ETF (IYT - Free Report) can thus be considered for a play. The fund measures the performance of companies from the Industrial Transportation, Airline and General Industrial Services industries of the U.S. equity market.
FedEx Corp (FDX - Free Report) , a Zacks Rank #2 stock is the leader in global express delivery services.
Retail
Retail trade added 22,000 jobs in April. Employment increased in warehouse clubs, supercenters, and other general merchandise retailers (+18,000) and in building material and garden equipment and supplies dealers (+13,000). Retail trade employment remained flat over the prior 12 months.
State Street Consumer Discretionary Select Sector SPDR ETF (XLY - Free Report) seeks to provide an effective representation of the consumer discretionary sector of the S&P 500 Index.
Amazon.com (AMZN - Free Report) is one of the largest e-commerce providers, with sprawling operations in North America, now spreading across the globe.