The big nonfarm payroll miss reported last week was another curveball, with major implications for short-term Fed policy. When Janet Yellen spoke earlier this week, she said, "The latest labor market data raise the less favorable possibility that firms may instead have decided to expand their operations more slowly, and I intend to continue to pay close attention to developments in this area." Yellen added that the Fed will raise rates "gradually and cautiously."
Kensho took a look this week at the most reliable sector trades and the major market benchmark performance after a big jobs miss. In keeping with a focus on the single data point now gaining so much attention, the dismal jobs number, here is one more way to trade that number: Kensho took a look at the S&P sector trades that do best in the month after a jobs miss of 100,000 or greater.