The jobs growth in the sector boosted health care ETFs–Health Care Select Sector SPDR ETF (NYSEArca: XLV) gained 1.38 percent as of 12:30 p.m. Eastern Time, Vanguard Health Care ETF (NYSEArca:> VHT) was up 1.39 percent, iShares US Medical Devices ETF (IHI) was up 1.03 percent, and iShares US Healthcare ETF (NYSEArca: IYH) gained 1.43 percent.
Other notable industries getting a boost in the jobs report include professional and business services, as well as manufacturing. There was a slight uptick in unemployment in June to 4 percent after dropping to 3.8 percent in May, but market experts point to the growing participation rate as the root cause.
Nonetheless, all signs still point to a strong labor market.
“Perfect is the word for the jobs report. It was superb, literally nothing wrong with it,” said Phil Orlando, chief equity market strategist at Federated Investors. “Not only was the headline number better than expected, but there were positive revisions for the previous months. Meanwhile the rate of unemployment went up because of the growing participation rate, while at the same time wage inflation went down a tick. So we have a strengthening economy, with a strengthening labor market, with no runaway inflation. That’s all extremely positive for the equity market.”
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