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Kensho Stats

Here's how to trade Friday's big jobs report

A worker assembles a box spring at McRoskey Mattress Company on August 9, 2016 in San Francisco, California.
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A worker assembles a box spring at McRoskey Mattress Company on August 9, 2016 in San Francisco, California.

How can investors trade the August jobs report that showed nonfarm payrolls increasing by 151,000, well under the predicted 180,000?

Using Kensho, a quantitative tool used by hedge funds, CNBC PRO searched for the areas of the market that perform the best and worst when the employment report beats or misses by at least 5,000 jobs.

In the past decade, the findings show that when the jobs figure came in below expectations, investors that day fled to what's considered "safe assets" such as gold, silver and Treasurys.


On the flip side, when the jobs number came in ahead of expectations, sectors such as financials, industrials and consumer discretionary all performed well.

Among the major benchmarks, Kensho data find that investors often bought into small-cap equities such as the iShares Core S&P Small-Cap ETF (Ticker: IJR).


Disclosure: NBCUniversal, parent of CNBC, is a minority investor in Kensho.