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2 ETFs and sector stocks up despite weak June jobs figures

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The U.S. economy added 206,000 jobs in June 2024, slightly below the downwardly revised 218,000 jobs in May and above the forecast of 190,000. The May data was revised sharply down from the initial 272,000 jobs, and the April data was also revised down by 57,000 to 108,000.

The unemployment rate, at 4.1 percent, and the number of unemployed, at 6.8 million, were little changed in June. These figures are higher than a year ago, when the unemployment rate was 3.6 percent and the number of unemployed was 6.0 million.

With these revisions, employment in April and May combined is 111,000 lower than previously reported. Average monthly payroll growth for this year was 222,000, compared with 251,000 in 2023 and 377,000 in 2022.

In June, most job creation occurred in the public sector (70,000), mainly in local government, excluding education (34,000) and state government (26,000); in health care (49,000); in social assistance (34,000); and in construction (27,000).

In June, the average hourly wage for all employees in the private nonfarm sector increased by 0.3% to $35.00. Over the past 12 months, the average hourly wage has increased by 3.9%. In June, the average hourly wage for production and non-management employees in the private sector increased by 0.3% to $30.05.

Below, we have highlighted some of the sectors that are expected to see smooth trading in the coming days in light of June jobs data.

Areas of interest

Health care

The health care sector added 49,000 jobs in June, less than the average monthly increase of 64,000 over the past 12 months. In June, employment increased in outpatient care services (+22,000) and in hospitals (+22,000).

Zacks Rank #1 (Strong Buy) Healthcare Select Sector SPDR ETF XLV can be played to exploit moderate momentum. HCA Health Care HCA, which earned a Zacks Rank #2 (Buy), is worth mentioning. It is the largest non-government operator of acute care hospitals in the United States.

Construction

In June, employment in construction (+27,000) saw notable growth, exceeding the average monthly increase of 20,000 recorded over the previous 12 months.

Investors can monitor the price development of Invesco Dynamic Building & Construction ETF PKB. The underlying Dynamic Building & Construction Intellidex index is comprised of stocks of US construction and building companies.

When it comes to stocks, Zacks Rank #2 MasTec It is possible to play with MTZ. This is a leading infrastructure construction company, which operates mainly in North America.

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The story continues

HCA Healthcare, Inc. (HCA) : Free Stock Analysis Report

MasTec, Inc. (MTZ) : Free Stock Analysis Report

ETF Health Care Select Sector SPDR (XLV): ETF Research Reports

Invesco Building & Construction ETF (PKB): ETF Research Reports

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Zacks Investment Research

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