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4 Sector ETFs & Stocks to Play Despite Soft July Jobs Data
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The U.S. economy added 187,000 jobs in July of 2023, below market expectations of 200,000 and following a downwardly revised 185,000 in June. The reading is also below the average monthly gain of 312,000 over the prior 12 months but remains about twice the 70K-100K required per month to maintain the growth in the working-age population, per tradingeconomics.
Below, we have highlighted some of the sectors that will likely see smooth trading in the days ahead in light of the July jobs data.
Sectors in Focus
Healthcare
Employment in the healthcare industry increased by 63,000 in jobs, higher than the average monthly gain of 51,000 in the past one year. Job gains occurred in ambulatory health care services (+35,000), hospitals (+16,000), and nursing and residential care facilities (+12,000).
Health Care Select Sector SPDR ETF (XLV) can be played to tap the moderate momentum. HCA Healthcare (HCA - Free Report) , which has a Zacks Rank #2 (Buy) deserves a mention. It is the largest non-governmental operator of acute care hospitals in the United States.
Construction
In July, employment in construction (+19,000). Employment in the industry has increased by an average of 17,000 per month in the past 12 months, compared with an average of 22,000 per month in 2022. . Over the month, job growth occurred in residential specialty trade contractors (+13,000) and in nonresidential building construction (+11,000).
Investors can keep a watch on the price movement of Invesco Dynamic Building & Construction ETF (PKB - Free Report) . As far as the stock is concerned, Zacks Rank #3 (Hold) Dycom Industries (DY - Free Report) is a good bet. It is a leading provider of specialty contracting services throughout the United States.
Leisure
Employment in leisure and hospitality rose by 17,000. This marks the fourth successive month of little employment change for this industry. There were average monthly gains of 67,000 in the first quarter of the year. Employment in the industry now remains below its February 2020 level by 352,000, or 2.1%.
The data still makes Invesco Dynamic Leisure and Entertainment ETF (PEJ - Free Report) a timely investment as international travel remains strong. The Zacks Rank #1 Marriott International (MAR - Free Report) , which is a leading worldwide hospitality company focused on lodging management and franchising, is an awesome bet from this segment.
Financials Including Real Estate
Employment in space grew by 19,000 in July. The industry had added an average of 16,000 jobs per month in the second quarter of the year, after employment was essentially flat in the first quarter. Over the month, job creations in real estate and rental and leasing (+12,000) was partially offset by a loss in commercial banking (-3,000).
Vanguard Real Estate ETF (VNQ - Free Report) could thus be played. Annaly Capital Management (NLY - Free Report) , which has a Zacks Rank #2, is our stock pick. Annaly Capital Management is a mortgage real estate investment trust (mREIT) that primarily owns, manages and finances a portfolio of real-estate-related investment securities.
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4 Sector ETFs & Stocks to Play Despite Soft July Jobs Data
The U.S. economy added 187,000 jobs in July of 2023, below market expectations of 200,000 and following a downwardly revised 185,000 in June. The reading is also below the average monthly gain of 312,000 over the prior 12 months but remains about twice the 70K-100K required per month to maintain the growth in the working-age population, per tradingeconomics.
Below, we have highlighted some of the sectors that will likely see smooth trading in the days ahead in light of the July jobs data.
Sectors in Focus
Healthcare
Employment in the healthcare industry increased by 63,000 in jobs, higher than the average monthly gain of 51,000 in the past one year. Job gains occurred in ambulatory health care services (+35,000), hospitals (+16,000), and nursing and residential care facilities (+12,000).
Health Care Select Sector SPDR ETF (XLV) can be played to tap the moderate momentum. HCA Healthcare (HCA - Free Report) , which has a Zacks Rank #2 (Buy) deserves a mention. It is the largest non-governmental operator of acute care hospitals in the United States.
Construction
In July, employment in construction (+19,000). Employment in the industry has increased by an average of 17,000 per month in the past 12 months, compared with an average of 22,000 per month in 2022. . Over the month, job growth occurred in residential specialty trade contractors (+13,000) and in nonresidential building construction (+11,000).
Investors can keep a watch on the price movement of Invesco Dynamic Building & Construction ETF (PKB - Free Report) . As far as the stock is concerned, Zacks Rank #3 (Hold) Dycom Industries (DY - Free Report) is a good bet. It is a leading provider of specialty contracting services throughout the United States.
Leisure
Employment in leisure and hospitality rose by 17,000. This marks the fourth successive month of little employment change for this industry. There were average monthly gains of 67,000 in the first quarter of the year. Employment in the industry now remains below its February 2020 level by 352,000, or 2.1%.
The data still makes Invesco Dynamic Leisure and Entertainment ETF (PEJ - Free Report) a timely investment as international travel remains strong. The Zacks Rank #1 Marriott International (MAR - Free Report) , which is a leading worldwide hospitality company focused on lodging management and franchising, is an awesome bet from this segment.
Financials Including Real Estate
Employment in space grew by 19,000 in July. The industry had added an average of 16,000 jobs per month in the second quarter of the year, after employment was essentially flat in the first quarter. Over the month, job creations in real estate and rental and leasing (+12,000) was partially offset by a loss in commercial banking (-3,000).
Vanguard Real Estate ETF (VNQ - Free Report) could thus be played. Annaly Capital Management (NLY - Free Report) , which has a Zacks Rank #2, is our stock pick. Annaly Capital Management is a mortgage real estate investment trust (mREIT) that primarily owns, manages and finances a portfolio of real-estate-related investment securities.