July Jobs Report Disappoints: Healthcare and Retail ETFs See Moderate Momentum

The July jobs report showed a disappointing loss of 23,000 nonfarm payrolls, falling short of the Dow Jones consensus forecast's expected gain of 83,000. The unemployment rate dipped to 4.1%, while the labor force participation rate dropped to its lowest level in over five years at 61.4%. Average hourly earnings rose by just $0.02 to $37.62, with a yearly increase of 3.2%.

The healthcare sector saw moderate momentum, adding 22,000 jobs in July. The Health Care Select Sector SPDR ETF (XLV) can be played to tap into this trend, with 37% exposure to the pharma industry and 16.65% focus on healthcare providers & services. Surgery Partners SGRY is a healthcare services company that operates outpatient delivery models for surgical care.

The sporting goods, hobby, musical instrument, book, and miscellaneous retailers added 10,000 jobs in July, with State Street SPDR S&P Retail ETF (XRT) offering some exposure to these industries. DICK'S Sporting Goods DKS is a major omnichannel sporting goods retailer that operates across multiple channels.