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.

“Seen the one today [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
BORN,
PPL PPL,
Reynolds REYN,
Hershey
HSY,
Thomson Reuters TRI,
Pacific Union
UNP,
seen V.

EMEA: Liquid air
FR: AI,
ASML ASML

    NL: ASML<span>,</span>
   Assa Abloy SE: ASSA<span>,</span>
   <strong>Coloplasty </strong>
    DK: COLO<span>,</span>
  <strong>    Diageo</strong> 
    United Kingdom: DGE<span/>

    DEO<span>,</span>
   Edenred FR: EDEN<span>,</span>
   Experian United Kingdom: EXPN<span>,</span>
   <strong>Haleon</strong> 
    United Kingdom: HLN<span>,</span>
   UK Legal and General: LGEN<span>,</span>
   LSEG United Kingdom: LSEG<span>,</span>
   <strong>national grid </strong>
    United Kingdom: NG<span>,</span>
  <strong>    Reckitt Benckiser</strong> 
    United Kingdom: RKT<span>,</span>
   Schneider FR: UP<span>,</span>
   Sika CH: SIKA<span>,</span>
   Kappa Smurf IE: SK3<span>,</span>
   <strong>Wolter Kluwer</strong> 
    NL: WKL<span>.</span>
  </p> <p>Asia Pacific: AIA HK: 1299<span>,</span>
   CP All PCL TH: CPALL<span>,</span>
   Digital CTOS MY: 5301<span>,</span>
   Hindustan Unilever IN: 500696<span>,</span>
   PH International Container: ICT<span>,</span>
   PT Bank Mandiri (Lost) Tbk, Samsung Biologics KR: 207940<span>,</span>
   Samsung Electronics KR: 005930<span/>
  </p> <p><strong>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 </strong>Carl Icahn.</p><h6>Markets</h6>
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   <p>ES00 Stock Futures<span/>

    NQ00<span/>

    YM00<span/>
   I'm back and forth, but now green, with 2-year Treasury yields BX: TMUBMUSD02Y<span/>
   at the latest since 2008. The DXY dollar index<span/>
   it was hovering at the highs of 2002, until the Bank of Japan intervened for the first time in 25 years after leaving benchmark interest rates unchanged.  CL00 oil price<span/>
   they are taller.</p> <p>Asian JP Stocks: NIK<span/>

    HK: HSI<span/>
  stumbled and the Korean won USDKRW<span/>
   hit a 13-year low.  European stocks XX: SXXP<span/>
  they are not doing much better.</p><h6>The buzz</h6> <p>Restaurants Darden DRI<span/>
   Shares are falling due to a failure to sell at the same store, with weakness in flagship restaurant chains like Olive Garden.</p> <p>After last week's warning and FedEx FDX cost reduction plans<span/>
   will report after closing.  Investors will focus on what management has to say about it and a global slowdown. </p> <p>Talos Energy shares TALO<span/>
   are rising after announcing a $ 1.1 billion cash and stock deal to buy EnVen Energy, a private company.</p> <p>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. </p> <p>Weekly jobless claims increased by 5,000 to 213,000, with leading economic indicators still to come. </p> <p>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. </p> <p>“If you are the president of the United States, you can declassify simply by saying 'It's declassified.'  Come to think of it. ”That was former President Donald Trump just before a federal court overturned the Mar-a-Lago classified record suspension.</p><h6>The best of the web</h6> <p>After a California law passed, Uber and Lyft drivers earn less than $ 7 an hour</p> <p>Why the world should be wary of a putin cornered</p> <p>How Mahsa Amini has become a powerful symbol for women in Iran </p><h6>The graph</h6> <p>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:
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  <h6>The tickers</h6> These were the most active stock market ticker symbols at 6:00 am Eastern.</p><table> <tr class="data odd"> <td align="" valign="top" colspan="1">



  Ticker


  </td> <td align="" valign="top" colspan="1">



  Security name


  </td> </tr> <tr class="data even"> <td align="" valign="top" colspan="1">



    TSLA<span/>
  </td> <td align="" valign="top" colspan="1">



  Tesla


  </td> </tr> <tr class="data odd"> <td align="" valign="top" colspan="1">



    GME<span/>
  </td> <td align="" valign="top" colspan="1">



  GameStop


  </td> </tr> <tr class="data even"> <td align="" valign="top" colspan="1">



    AMC<span/>
  </td> <td align="" valign="top" colspan="1">



  AMC entertainment


  </td> </tr> <tr class="data odd"> <td align="" valign="top" colspan="1">



    AAPL<span/>
  </td> <td align="" valign="top" colspan="1">



  Apple


  </td> </tr> <tr class="data even"> <td align="" valign="top" colspan="1">



    NIO<span/>
  </td> <td align="" valign="top" colspan="1">



  NIO


  </td> </tr> <tr class="data odd"> <td align="" valign="top" colspan="1">



    BBY<span/>
  </td> <td align="" valign="top" colspan="1">



  Bath to bed and beyond


  </td> </tr> <tr class="data even"> <td align="" valign="top" colspan="1">



    APE<span/>
  </td> <td align="" valign="top" colspan="1">



  AMC Entertainment Preferred Stock


  </td> </tr> <tr class="data odd"> <td align="" valign="top" colspan="1">



    AVCT<span/>
  </td> <td align="" valign="top" colspan="1">



  American virtual cloud technologies


  </td> </tr> <tr class="data even"> <td align="" valign="top" colspan="1">



    AMZN<span/>
  </td> <td align="" valign="top" colspan="1">



  Amazon


  </td> </tr> <tr class="data odd"> <td align="" valign="top" colspan="1">



    NVDA<span/>
  </td> <td align="" valign="top" colspan="1">



  Nvidia


  </td> </tr>  </table><h6>Random reads</h6> <p>The unborn give a little thumbs down to the cabbage.</p> <p>$ 625 each for dinner at Disney World DIS<span>.</span>
   </p> <p><strong>Need to Know starts early and is updated until the opening bell, but sign up here to get it once in your inbox.  The e-mailed version will be sent around 7:30 am Eastern.</strong>


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