From tech to financials, here are dozens of inflation-sensitive stocks that crush it when prices are rising, from Credit Suisse. – MarketWatch

China’s interest-rate cuts and some easing of the bond selloff seem to have cheered up investors — at least for now — who have been hitting the sell button over Federal Reserve rate-hike fears.
A day after Chinese President Xi Jinping warned of fallout from Fed tightening, the country’s central bank has cut benchmark lending rates for a second month (Alibaba shares BABA, -5.95% are flying). Stocks are up following another Wall Street selloff that saw the Nasdaq’s COMP, -2.72% descend into correction territory.
How much inflation fear is merited for equity investors? Keep it in check, says our call of the day from Credit Suisse strategists, who note that since the COVID-19 pandemic’s onset, “the most inflation-sensitive stocks have substantially outperformed,” and often traded at a big discount.
Jonathan Golub, chief U.S. equity strategist, and Patrick Palfrey, senior equity strategist, told clients that they expect inflation will move higher and stay there longer, due to several factors, including a strong economy and higher commodity and home prices.
“Historically, earnings and stock prices have moved directionally with inflation. As the exhibit below shows, over the past 4½ months, stock prices have risen an average of 32 bps on days when inflation expectations rise, and fall -41 bps on down inflation expectation days,” said Golub in a note.
Golub and the team have come up with exhaustive lists of companies that are most sensitive to inflation. Here’s a rundown of tech names, including Apple AAPL, -1.28% and Microsoft MSFT, -1.85% — least sensitive — and Nvidia NVDA, -3.21%, Western Digital WDC, -3.52% and Micron Tech MU, -3.69% — most sensitive.
Across other sectors, they highlight other highly inflation-sensitive stocks. For example, in energy, that includes Marathon Oil MRO, -3.10%, Schlumberger SLB, -1.86% and Hess HES, -1.44% in the energy sector, with DuPont DD, -2.16%, Dow DOW, -1.89%, Eastman Chemical EMN, -1.70%, Freeport-McMoRan FCX, -5.09% and Mosaic MOS, -3.01% in materials.
American Airlines AAL, -2.74%, Caterpillar CAT, -1.17%, Boeing BA, -4.09%, Deere DE, -0.74% and Parker-Hannifin PH, -0.24% are among most inflation-sensitive stocks in the industrial sector, while Bath & Body Works BBWI, -0.11%, Caesars Entertainment CZR, -6.25%, Norwegian Cruise Lines NCLH, -4.61%, Etsy ETSY, -6.55% and General Motors GM, -2.51% are notables among discretionaries.
For staples, Archer Daniels ADM, +0.07%, Estée Lauder EL, -1.34%, Procter & Gamble PG, +0.38% and Monster Beverage MNST, -0.87% are among the inflation-sensitive highlights, while Anthem ANTM, -2.47%, Cardinal Health CAH, -2.03%, McKesson MCK, -2.07%, Medtronic MDT, -0.48% and ResMed RMD, -1.18% pop up for healthcare. And in financials, Discover DFS, -2.01%, Huntington Bancshares HBAN, -8.99%, Prudential PRU, -2.15%, Charles Schwab SCHW, -2.44% and State Street STT, -3.42% are top sensitive stocks.
Read: At least 7 signs show how the stock market is breaking down
Weekly jobless claims came in higher than expected, while a Philadelphia Fed manufacturing survey rebounded to 23.2 in January. Still ahead are existing-home sales.
HSBC has cut its overweight rating on U.S. stocks, partly on rising rate expectations, saying China may be one place to hide.
Casper Sleep CSPR, +0.16% stock is up 11% after the mattress and sleep accessories group said shareholders have approved a buyout.
Travelers Cos. TRV, -1.56% is surging on a profit beat, Signet Jewelers SIG, +1.28% on higher guidance, and Baker Hughes BKR, +1.95% is up modestly after results. American Airlines shares AAL, -2.74% are up on a revenue beat and lower losses, while United Airlines UAL, -2.87% is taking a hit from after a weaker capacity outlook for 2022, while Alcoa stock AA, -8.23% is rising after an earnings beat.
Netflix NFLX, -21.79% will report results after the market close, but how important is that subscriber-growth number?
Read: Here’s what’s coming to Netflix in February 2022 — along with a price hike
The end of President Joe Biden’s first year in office was marked by defeat, as Democrats failed to change Senate filibuster procedures to push through election legislation because two party members sided with Republicans.
And geopolitical worries are in focus, with eyes on Russian troops along the border of Ukraine.
Scientists are warning that antimicrobial resistance has become a leading cause of global deaths, killing 3,500 people daily and more than from malaria or HIV/AIDS.
In a bid to boost vaccination levels, Austria is kicking off a lottery for those who have the COVID-19 shots, offering handouts worth 500 euros ($568) for perks such as hotels and restaurants.
Led by the Nasdaq COMP, -2.72%, stocks DJIA, -1.30% SPX, -1.89% are up, tracking gains in Asia, with the Hang Seng HSI, +0.05% up over 3% and property stocks soaring after China cut lending rates. Treasury yields TMUBMUSD10Y, 1.762% TMUBMUSD02Y, 1.015% are only slightly higher. European stocks SXXP, -1.84% are flat after Germany reported record annual producer prices. Crude prices CL00, -0.84% BRN00, +0.01% are slipping after three consecutive wins.
Read: Oil could break the stock market’s back if crude ‘goes parabolic’ — How to prepare
Commodities are off to a strong start this year, but it isn’t just about oil and metals, notes Chris Weston, Pepperstone’s head of research.
“We’ve seen some big moves in AG’s [agriculture] and soft commodities too and I have an eye on coffee and hogs — lean hogs could be starting something beautiful. I know this isn’t a market that comes onto everyone’s radar too often, but for trend-followers or momentum players, when this goes it can go and will often be traded by CTAs (systematic trend followers),” he told clients.
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Like Civil War re-enactors, but in this case clad in hoodies and wielding zero-commission apps, the Apes pushed the price of GameStop and tried to remind Wall Street to never forget.
Barbara Kollmeyer is an editor for MarketWatch in Madrid. Follow her on Twitter @bkollmeyer.

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