Jobs Figures Appear Overtly Positive, But Interpretation Is Key

The U.S. government reported on Friday that the economy added 227,000 jobs throughout January, which exceeded economists' predictions of 175,000. TD Ameritrade's JJ Kinahan, managing director of client advocacy and market structure, took a few minutes to chat with Benzinga about the jobs report.

Watching Retail

Kinahan argued there are some aspects of the jobs report that aren't as encouraging as the headline number. These include the slower wage growth and the fact that the largest segment of job creation was retail.

Kinahan continued that looking past these two areas of concern, jobs are being creating in important sectors including healthcare and business-to-business services, in addition to a "renewed optimism" in the construction sector.

A Look Toward Financials

Looking forward, Kinahan believes financial services could become a notable sector that creates lots of new jobs. He added that the financial sector is in a "very good spot at the moment" — even if interest rates do rise, they will remain cheap from a historical perspective.

Despite the encouraging signs in the report, Kinahan doesn't believe it will serve as a precursor for an interest rate hike in the near term.

Finally, Kinahan will be looking for signs of continued construction growth in the February jobs data. He will also be paying attention to the retail sector to see if there are any adjustments after a strong January reading, which came at a time when many retailers are reporting poor sales throughout the holiday.