Jobs Report Reignites Recession Fears: JNJ and ABT Shine as Defensive Holdings

The July jobs report from the U.S. Bureau of Labor Statistics showed that employers cut 23,000 jobs in July 2026, a weaker-than-expected result that has reignited recession fears.

This news comes as no surprise to many economists who have been warning about a potential economic downturn due to high inflation and geopolitical tensions.

Johnson & Johnson (JNJ) and Abbott Laboratories (ABT), both Dividend Kings with long track records of raising their payouts, are being highlighted as potential defensive holdings in this environment.

J&J's pipeline is delivering innovation, including the approval for Icotyde, an oral peptide treatment for plaque psoriasis, and Milvexian, a potentially game-changing anticoagulant.

Abbott's medical device unit posted 5.9 billion in second-quarter sales, up 8.4% year over year, driven by the FreeStyle Libre glucose monitoring platform.