4 Sector ETFs & Stocks to Buy on Forecast-Beating Jobs Data
Zacks Investment Research | Aug 10, 2020 01:00AM ET
The U.S. economy added 1.76 million jobs in July 2020, down from a record 4.8 million in the previous month. However, the reading beat market expectations of the expectations of 10.6% .
Average hourly earnings for all employees on private nonfarm payrolls rose by 7 cents to $29.39. However, the average hourly earnings of private-sector production and nonsupervisory employees decreased by 11 cents to $24.63 in July. The average workweek for employees on private nonfarm payrolls decreased 0.1 hours to 34.5 hours in July.
Overall, two months of record-setting payroll growth momentum decelerated in July. But that is understandable as the virus scare is still alive, the economy is not yet out of the woods, and the bounce in post-lockdown hiring is slowly ebbing (read: all Consumer Discretionary ETFs here).
Invesco Dynamic Leisure and Entertainment ETF PEJ – The underlying Dynamic Leisure & Entertainment Intellidex Index comprises stocks of U.S. leisure and entertainment companies.
Dominos Pizza Inc (DPZ ) – The Zacks Rank # 2 (Buy) company delivers pizzas under the Domino’s Pizza brand, is a top player in the Quick-Service Restaurant or QSR Pizza category.
h3 Retail/h3In July, retail trade added 258,000 jobs. Still, job gains in the industry are 913,000 lower than in February. In July, almost half of the job gains in the retail sector occurred in clothing and clothing accessories stores (+121,000). However, the part of general merchandise stores that includes warehouse clubs and supercenters lost jobs (-64,000).
SPDR SP Retail ETF (XRT) – The underlying S&P Retail Select Industry Index represents the retail sub-industry portion of the S&P TMI. Apparel Retail makes up about 17.26% of the Zacks Rank #2 fund.
Sportsmans Warehouse Holdings Inc. (SPWH ) – The Zacks Rank #2 company is an outdoor sporting goods retailer. Its stores offer camping products, fishing products, and hunting and shooting products.
h3 Health Care/h3Jobs in the health care sector grew by 126,000 in the month, with gains in offices of dentists (+45,000), hospitals (+27,000), offices of physicians (+26,000) and home health care services (+16,000) grabbing the spotlight.Employment in health care is down by 797,000 since February.
Health Care Select Sector SPDR Fund XLV – The underlying Health Care Select Sector Index includes companies from the following industries: pharmaceuticals; health care providers & services; health care equipment & supplies; biotechnology; life sciences tools & services; and health care technology.
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Avita Medical (NASDAQ:RCEL) Ltd. (RCEL ) – The Zacks Rank #2 company is a regenerative medicine company with a technology platform to address unmet medical needs in burns, chronic wounds and aesthetics indications.
h3 Industrials/h3Manufacturing employment increased by 26,000, but it is still off by 740,000 from February. Much of the gain occurred in motor vehicles and parts (+39,000). The manufacturing sector has added 623,000 jobs over the past three months.
Industrial Select Sector SPDR Fund (XLI ) – The fund looks to provide precise exposure to companies in the following industries: aerospace and defense; industrial conglomerates; marine; transportation infrastructure, machinery; road and rail; air freight and logistics; commercial services and supplies.
Chart Industries (NASDAQ:GTLS) Inc. (Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
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