Some industrial and consumer stocks are among the biggest winners the week after the U.S. reports a solid monthly jobs report, history shows.
Friday’s employment report showed the U.S. economy added 209,000 jobs in July, beating expectations of 183,000 and marking a second straight month of plus-200,000 job creation.
When the monthly jobs report comes in above 200,000, Boeing has been the best-performing stock in the Dow Jones industrial average over the next five trading days, according to historical analysis using Kensho, a quantitative analytics tool used by hedge funds.
The study looked at 35 jobs reports since the start of the bull market in March 2009.
Boeing gained an average 0.78 percent and traded positive 71 percent of the time. In contrast, the S&P 500 was little changed, rising an average 0.04 percent and trading positive slightly more than half the time.
The stock is a solid performer already, jumping in July to a record high after reporting solid earnings and guidance. Boeing has surged more than 50 percent this year and accounting for a quarter of the Dow Jones industrial average’s more than 11 percent climb in 2017 through Thursday’s close, according to Howard Silverblatt, senior index analyst at S&P Dow Jones Indices.
Another industrials stock, United Technologies, climbed 0.29 percent on average, trading positive nearly two-thirds of the time.
Materials stock DuPont was another top performer in the five trading days following a solid jobs report, rising 0.61 percent on average and trading positive 60 percent of the time, Kensho showed.
When looking at S&P 500 industry sectors, consumer staples were by far the best performer, climbing an average 0.29 percent and trading positive two-thirds of the time. Consumer discretionary climbed an average 0.07 percent, trading positive 60 percent of the time.
Consumer discretionary stocks in the Dow were also among the top gainers.
Home Depot climbed an average 0.4 percent and traded positive two-thirds of the time, while McDonald’s gained an average 0.36 percent and traded positive 60 percent of the time, according to Kensho.
Bars and restaurants contributed the most to July’s jobs report with 53,000 additions, according to the Bureau of Labor Statistics.
However, consumer staples Dow stocks Coca-Cola and Wal-Mart didn’t show significant outperformance in the study, while industrial giant Caterpillar, which depends more on China’s economic growth than that of the U.S., tended to decline slightly.
— CNBC’s Jeff Cox contributed to this report.
Disclosure: CNBC’s parent NBCUniversal is a minority investor in Kensho.
Source: Investment Cnbc
Boeing is the No. 1 Dow stock to own after a strong jobs report, history shows