JJ Kinahan On Jobs Report, Interest Rate Hike And Sectors To Watch

A few days ago, Benzinga had a chat with TD Ameritrade's Chief Strategist JJ Kinahan, who shared some views on the U.S. and global economy. The expert was first questioned about the seemingly positive jobs report and its effect on the interest rate hike. He was asked if these results further reinforce the hike.

“It's the final countdown,” he responded, adding he thought it was a good report. However, he continued, “It's interesting that the probability of an interest rate hike hasn't changed at 79 percent.”

Related Link: Keith Banks And JJ Kinahan Weigh In On The Health Of The U.S. Economy

Sectors To Watch

Now, given the timing of the interest rate hike decision, the question that emerges is: Which sectors of the economy will be most affected?

According to Kinahan, “Financials will obviously be impacted positively. Theoretically, if the dollar is stronger, commodities will be weaker; and automakers will be helped by lower oil cost driving large auto sales.”

The expert continued to explicate that a rate hike “Could also benefit retailers, driving down the cost of commodities while keeping price the same and improving margins.”

More Hikes In 2016, Global Implications

Benzinga then asked about subsequent rate hikes, how they are likely to occur and if the following moves will be gradual.

The strategist stated he believes the Fed “will be very careful” and raise interest rates steadily. “And to Janet [Yellen]'s credit, I think she has telegraphed this for some time,” he added.

Finally, Kinahan looked outside of the United States, explaining, “The eurozone will be affected [by a rise in U.S. interest rates] considering they are on the opposite end of the spectrum [in terms of economic situations].”

Disclosure: Javier Hasse holds no positions in any of the securities mentioned above.