13 stocks whose intrinsic advantages protect them from the economic uncertainty that pervades the market

Investors who were unsure of the Fed’s merciless inflation policy probably got the message now.

And as markets adjust to the prospect of further hikes from a central bank that plans to “keep going until it’s over,” with threats of an escalating war in Europe and an energy crisis hanging in the background, the S&P 500 SPX
might struggle to revisit the summer nadir.

“Give today’s one [Wednesday’s] the reversal to the downside and the continued lack of signs of capitulation, we think the path to June lows (3,640) may be faster than many expect, “Jonathan Krinsky, BTIG’s market technical chief, also told clients. if it leaves some hope.

“The bad news is that we are still in one of the weakest seasonal windows of the year, especially in a mid-term year. The good news is that it quickly reverses by mid-October. We plan to test or break the June lows before then, which should create a better entry point for a year-end rally, “said Krinsky.

Investors would be forgiven for feeling like they have been cornered right now when it comes to investment options. This brings us to ours call of the day Credit Suisse, which offers a “moat of protection for uncertain times” through dozens of companies with strong business models.

Note that the bank is currently recommending an underweight position in equities due to the “potential downside risk for the 2023 earnings estimates between 15% and 20% for the S&P 500”. They see “highly uncertain” growth prospects caused by aggressive central bank responses to Europe’s sticky wage growth and energy crisis. Strategists expect US growth to reach just 0.9% in 2023, with a 0.2% contraction in the euro zone.

However, Richard Kersley, head of global equity research and his team asked analysts from different regions to “identify companies whose earnings may not be immune from economic uncertainty, but should be better protected from economic uncertainty thanks to high barriers to entry surrounding their businesses. “

“The selected stocks reflect examples of companies that have shown a superior ability to innovate, their first mover advantage or simply a scale advantage that has developed a market-leading position and with it greater pricing power.” he has declared.

And instead of limiting choices to defensive sectors or styles, they launched a broad net and came up with 35 outperforming stocks with an “economic gap between regions.” Names in bold represent those with earnings estimates and target prices above consensus, as well as most calls against consensus.

Americas: Air products
APD,
Autodesk
ADSK,
McDonald’s
MCD,
Microsoft MSFT,
NextEra
NO,
PPL PPL,
Reynolds REYNE,
Hershey
HSY,
Thomson Reuters TRIA,
Pacific Union
UNP,
seen V.

EMEA: Liquid air
FR: AI,
ASML ASML

IT: asml,
Assa Abloy SE: ASSA,
Coloplasty
DK: COLO,
Diageo
United Kingdom: DGE

DEO,
Edenred FR: EDEN,
Experian United Kingdom: EXPN,
haleon
United Kingdom: HLN,
UK Legal and General: LGEN,
LSEG United Kingdom: LSEG,
national grid
United Kingdom: NG,
Reckitt Benckiser
United Kingdom: RKT,
Schneider FR: UP,
Sika CH: SIKA,
Kappa Smurf IE: SK3,
Wolter Kluwer
NL: WKL.

Asia Pacific: AIA HK: 1299,
CP All PCL TH: CPALL,
Digital CTOS MY: 5301,
Hindustan Unilever IN: 500696,
PH International Container: ICT,
PT Bank Mandiri (Lost) Tbk, Samsung Biologics KR: 207940,
Samsung Electronics KR: 005930

Check out the second day of MarketWatch’s Best New Ideas in Money Festival. It’s not too late to sign up, and here’s an interview you may have missed with legendary investors Ray Dalio and Carl Icahn.

Markets

ES00 Stock Futures

NQ00

YM00
I’m back and forth, but now green, with 2-year Treasury yields BX: TMUBMUSD02Y
at the latest since 2008. The DXY dollar index
it was poised at the highs of 2002, until the Bank of Japan intervenes for the first time in 25 years after leaving benchmark interest rates unchanged. CL00 oil price
they are taller.

Asian JP Stocks: NIK

HK: HSI
stumbled and the Korean won USDKRW
hit a 13-year low. European stocks XX: SXXP
they are not doing much better.

The buzz

Darden Restaurants DRIA
Shares are falling due to a failure to sell at the same store, with weakness in flagship restaurant chains like Olive Garden.

After last week’s warning and FedEx FDX cost reduction plans
will report after closing. Investors will focus on what management has to say about it and a global slowdown.

Talos Energy shares TALO
are rising after announcing a $ 1.1 billion cash and stock deal to buy EnVen Energy, a private company.

The Swiss National Bank matched the Fed’s 75bp hike and marked the end of negative interest rates for global central banks. Both the central bank of Norway and the Bank of England rose by 50 basis points.

Weekly jobless claims increased by 5,000 to 213,000, with leading economic indicators still to come.

More than two hundred Ukrainians and foreigners, including soldiers defending a Mariupol steel mill, were freed in exchange for an ally of Russian President Vladimir Putin.

“If you are the president of the United States, you can declassify simply by saying ‘It’s declassified.’ Just come to think of it. ”That was former President Donald Trump just before a federal court lifted the Mar-a-Lago classified record suspension.

The best of the web

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How Mahsa Amini has become a powerful symbol for women in Iran

The graph

Here’s an update on a popular analog chart comparing the progress of the S&P 500 in 2022 to what happened in 2008 from blogger The Market Ear. Looking risky:

The ear of the market / Refinitive

The tickers

These were the most active stock market ticker symbols at 6:00 am Eastern.

ticker

Security name

TSLA

Tesla

GME

GameStop

AMC

AMC entertainment

AAPL

apple

NIO

NIO

BBY

Bath to bed and beyond

APE

AMC Entertainment Preferred Stock

AVCT

American virtual cloud technologies

AMZN

Amazon

NVDA

Nvidia

Random reads

The unborn give a little thumbs down to the cabbage.

$ 625 each for dinner at Disney World DIS.

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