The US economy added 114,000 jobs in July 2024, well below a downwardly revised 179,000 in June and forecasts of 175,000. It is also the lowest level in three months, below the average monthly gain of 215,000 over the prior 12 months, indicating a cooling off in the labor market.
The unemployment rate in the United States rose to 4.3% in July of 2024 from 4.1% in the previous month, the highest since October of 2021, and above market expectations that it would remain at 4.1%. In the meantime, the labor force participation rate inched up to 62.7% from 62.6%.
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 55,000 in jobs, above the average monthly gain of 63,000 over the prior 12 months. In July, employment rose in home health care services (+22,000), hospitals (+20,000), and nursing and residential care facilities (+9,000).
Zacks Rank #1 (Strong Buy)Health Care Select Sector SPDR ETF XLV can be played to tap the moderate momentum. HCA Healthcare HCA, which has a Zacks Rank #1 deserves a mention. It is the largest non-governmental operator of acute care hospitals in the United States.
Construction
In July, employment in construction (+25,000) was in line with the average monthly gain over the prior 12 months (+19,000). Over the month, employment increased in nonresidential specialty trade contractors (+19,000).
Investors can keep a watch on the price movement of Invesco Dynamic Building & Construction ETF PKB. As far as the stock is concerned, Zacks Rank #1 (Buy) EMCOR Group EME is one of the leading providers of mechanical and electrical construction, industrial and energy infrastructure, as well as building services for a diverse range of businesses.
Transportation and Warehousing
Employment in employment continued to improve in transportation and warehousing (+14,000), with job gains in couriers and messengers (+11,000) and warehousing and storage (+11,000). These gains were partially offset by a job loss in transit and ground passenger transportation (-11,000). Transportation and warehousing created 119,000 jobs since a recent low in January of this year.
The data makes SPDR S&P Transportation ETF XTN a timely investment. The Zacks Rank #3 United Airlines Holdings UAL is based in Chicago. The carrier changed its name from United Continental Holdings to United Airlines Holdings in June 2019. It is the holding company for both United Airlines and Continental Airlines.
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Get it free >>United Airlines Holdings Inc (UAL) : Free Stock Analysis Report
EMCOR Group, Inc. (EME) : Free Stock Analysis Report
HCA Healthcare, Inc. (HCA) : Free Stock Analysis Report
Health Care Select Sector SPDR ETF (XLV): ETF Research Reports
Invesco Building & Construction ETF (PKB): ETF Research Reports
SPDR S&P Transportation ETF (XTN): ETF Research Reports
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
