UAW's Return To Work Pushes US Jobs Growth Higher, But Dark Clouds Hover Over Retail Sector
Portfolio Pulse from Neil Dennis
The U.S. jobs growth in November surpassed expectations with 199,000 new jobs, influenced by the return of striking UAW workers and Hollywood screenwriters and actors. The manufacturing sector saw a net increase of 28,000 jobs, reflecting the return of 30,000 UAW members. Retail sector lost 38,000 jobs, with department stores accounting for half. Healthcare added 77,000 jobs, and leisure and hospitality added 40,000. Equity indices were flat, the dollar rose, and ETFs tracking these sectors showed varied early trade performance.
December 08, 2023 | 4:29 pm
News sentiment analysis
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POSITIVE IMPACT
The iShares U.S. Industrials ETF (IYJ) saw an early trade increase of 0.3% possibly due to the positive jobs report in the manufacturing sector, influenced by the return of UAW members.
The return of UAW members to the workforce after a strike likely contributed to the positive perception of the manufacturing sector, which could lead to a short-term positive impact on IYJ.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 70
POSITIVE IMPACT
The Invesco Dynamic Leisure and Entertainment ETF (PEJ) was up 1.8% in early trade, despite a slight decrease in job growth for leisure and hospitality compared to the 12-month average.
PEJ's early trade performance suggests that the ETF is responding positively, potentially due to factors beyond the slight dip in job growth for the sector.
CONFIDENCE 70
IMPORTANCE 50
RELEVANCE 60
POSITIVE IMPACT
The Health Care Select Sector SPDR Fund (XLV) saw a modest increase of 0.1% in early trade, correlating with the healthcare sector's strong job addition of 77,000 in November.
The healthcare sector's significant job growth is a positive indicator for the sector and may contribute to a short-term positive impact on XLV.
CONFIDENCE 75
IMPORTANCE 55
RELEVANCE 65
NEUTRAL IMPACT
The SPDR S&P Retail ETF (XRT) was up 0.6% in early trade despite the retail sector losing 38,000 jobs, indicating that the ETF's performance may not be immediately impacted by the negative jobs report.
Although the retail sector experienced significant job losses, the early trade increase in XRT suggests that other factors may be influencing investor sentiment in the short term.
CONFIDENCE 70
IMPORTANCE 50
RELEVANCE 60