Utility Stocks May Benefit From Weak Jobs Number

Just this past week we found out that U.S. employers added the fewest jobs in May in nearly 6 years.

Non-farm payrolls came in a +38K vs the +164K average economists were expecting (lowest coming in at +90K).

As many market participants were forecasting for the next rate hike from the Federal Reserve in the near future, following the dismal May jobs reports the Fed Fund futures probability dropped from 34% to 3.8% for June. The odds of a 25 to 50 basis point increase for July stands at 31.3%. Now that Janet Yellen and the other Federal Reserve members are likely to hold off on a move closer to normalization in interest rates for the time being, how can traders and investors position themselves? One area to consider is in the higher yielding assets/sectors (high … Read More »