Yahoo Finance 4 Sector ETFs & Stocks That Show Promise After March Jobs Data
The United States economy added 236,000 jobs in March, the least since December of 2020, and compared to forecasts of 239,000, after unusually mild weather and seasonal factors led to strong jobs gain in the first two months of the year, per tradingeconomics.
The unemployment rate in the United States slipped to 3.5% in March 2023, against expectations of 3.6%.The number of unemployed people decreased by 97 thousand to 5.839 million and employment levels rose by 577 thousand to 160.892 million.
In March, average hourly earnings for all employees on private nonfarm payrolls increased by 9 cents, or 0.3%, to $33.18. Over the past 12 months, average hourly earnings have increased by 4.2%. In March, average hourly earnings of private-sector production and nonsupervisory employees rose by 9 cents, or 0.3% to $28.50. For 2023, the labor market is set to remain tight but job growth will likely slow further.
Below, we have highlighted some of the sectors that will likely see smooth trading in the days ahead in light of the March jobs data.
Leisure
Employment in leisure and hospitality rose by 72,000. However, leisure and hospitality added an average of 95,000 over the past six months. Average job growth was less than the average gain of 79,000 jobs per month in 2022 and 196,000 jobs per month in 2021. Employment in the industry remains below its pre-pandemic February 2020 level by 2.2%. The data makes Invesco Dynamic Leisure and Entertainment ETF PEJ a timely investment.
As far as the stock pick is concerned, investors may play Zacks Rank #1 (Strong Buy) Hilton Grand Vacations HGV. It is a division of Hilton Worldwide, is engaged in hospitality business. It markets and operates vacation ownership resorts.
Healthcare
Employment in the healthcare industry increased by 34,000 in March. Job gains occurred in home health care services (+15,000) and hospitals (+11,000). Employment continued to increase in nursing and residential care facilities (+8,000). Job growth in health care averaged 54,000 per month in the past six months while the same averaged 49,000 per month in 2022 and 9,000 per month in 2021.
Health Care Select Sector SPDR ETF XLV can be played to tap the moderate momentum. HCA Healthcare HCA, which has a Zacks Rank #3 (Hold) deserves a mention. It is the largest non-governmental operator of acute care hospitals in the U.S. Headquartered in Nashville, TN, it operates hospitals and related health care entities.
Transportation
Employment in transportation and warehousing was decent in March (+10,000). Over the month, job gains continued in Couriers and messengers (+7,000) and air transportation (+6,000). Employment in transportation and warehousing has been more-or-less same in recent months.
SPDR S&P Transportation ETF XTN has a Zacks Rank #2 with a High risk outlook. As far as stock pick is concerned, American Airlines AAL, which carries a Zacks Rank #1 (Strong Buy) is woth a look.
Retail – Department Stores
Employment in retail trade was downbeat in March (-15,000). However, job gains in department stores (+15,000) deserve a special mention as job losses were rampant in building material and garden equipment and supplies dealers (-9,000) and in furniture, home furnishings, electronics, and appliance retailers (-9,000). SPDR S&P Retail ETF XRT outlook deserves a look.
As far as stock is concerned, investors can take a look at Zacks Rank #1 The Kroger Co. KR. The stock operates in the thin-margin grocery industry, has been undergoing a complete makeover, not only with respect to products but also in terms of the way consumers prefer shopping grocery.
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The Kroger Co. (KR) : Free Stock Analysis Report
HCA Healthcare, Inc. (HCA) : Free Stock Analysis Report
American Airlines Group Inc. (AAL) : Free Stock Analysis Report
Health Care Select Sector SPDR ETF (XLV): ETF Research Reports
SPDR S&P Retail ETF (XRT): ETF Research Reports
Invesco Dynamic Leisure and Entertainment ETF (PEJ): ETF Research Reports
SPDR S&P Transportation ETF (XTN): ETF Research Reports
Hilton Grand Vacations Inc. (HGV) : Free Stock Analysis Report
