Sector Snap: Staffing companies mixed on jobs data

NEW YORK—Shares of staffing companies wavered Friday, after the Labor Department said the unemployment rate declined in April, but at least one analyst said it was too soon to say whether the job market was making a comeback.

Employers cut 20,000 jobs in April, fewer than expected and an improvement from 81,000 payroll cuts in March.

Meanwhile, the unemployment rate declined to 5 percent from 5.1 percent in March.

Citi Investment Research analyst Ashwin Shirvaikar said investors may interpret the report as a sign of a bottoming economy.

"Today's reaction is more about sentiment than data," Shirvaikar wrote in a client note. "We are wary of reaching such a drastic conclusion on just one month of data."

Nevertheless, Shirvaikar said all staffing stocks will benefit from brightened sentiment. The analyst likes Manpower Inc. in particular for its international exposure.

Staffing stocks were mixed in afternoon trading. On Assignment Inc. rose 44 cents, or 6.1 percent, to $7.64. Cross Country Healthcare Inc., which provides healthcare staffing services, declined 10 cents to $12.01.

Manpower declined 59 cents to $68.41, and Korn/Ferry International Inc. declined 72 cents, or 3.8 percent, to $18.08.

TrueBlue Inc. declined 10 cents to $12.60; Hudson Highland Group Inc. slipped 49 cents, or 5 percent, to $9.27; and Kelly Services Inc. rose 26 cents to $22.91.

Robert Half International Inc. rose 63 cents, or 2.6 percent, to $25.01.