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

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,
-2.10%
and Microsoft
MSFT,
+0.22%
— least sensitive — and Nvidia
NVDA,
-3.23%,
Western Digital
WDC,
-3.40%
and Micron Tech
MU,
-3.09%
— most sensitive.

Across other sectors, they highlight other highly inflation-sensitive stocks. For example, in energy, that includes Marathon Oil
MRO,
-1.70%,
Schlumberger
SLB,
-1.17%
and Hess
HES,
-1.03%
in the energy sector, with DuPont
DD,
-2.61%,
Dow
DOW,
-0.60%,
Eastman Chemical
EMN,
-0.14%,
Freeport-McMoRan
FCX,
-0.47%
and Mosaic
MOS,
-3.83%
in materials.

American Airlines
AAL,
-3.30%,
Caterpillar
CAT,
-3.10%,
Boeing
BA,
-3.52%,
Deere
DE,
-2.09%
and Parker-Hannifin
PH,
-1.46%
are among most inflation-sensitive stocks in the industrial sector, while Bath & Body Works
BBWI,
+0.07%,
Caesars Entertainment
CZR,
-1.72%,
Norwegian Cruise Lines
NCLH,
-2.55%,
Etsy
ETSY,
-0.21%
and General Motors
GM,
-4.34%
are notables among discretionaries.

For staples, Archer Daniels
ADM,
-0.38%,
Estée Lauder
EL,
-0.46%,
Procter & Gamble
PG,
+3.38%
and Monster Beverage
MNST,
+0.03%
are among the inflation-sensitive highlights, while Anthem
ANTM,
+0.04%,
Cardinal Health
CAH,
-0.99%,
McKesson
MCK,
-0.55%,
Medtronic
MDT,
+0.25%
and ResMed
RMD,
+0.29%
pop up for healthcare. And in financials, Discover
DFS,
-4.22%,
Huntington Bancshares
HBAN,
-1.95%,
Prudential
PRU,
-2.19%,
Charles Schwab
SCHW,
-0.71%
and State Street
STT,
-7.06%
are top sensitive stocks.

Read: At least 7 signs show how the stock market is breaking down

The buzz

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,
+10.19%
stock is up 11% after the mattress and sleep accessories group said shareholders have approved a buyout.

Travelers Cos.
TRV,
-2.14%
is surging on a profit beat, Signet Jewelers
SIG,
-0.86%
on higher guidance, and Baker Hughes
BKR,
-1.90%
is up modestly after results. American Airlines shares
AAL,
-3.30%
are up on a revenue beat and lower losses, while United Airlines
UAL,
-2.65%
is taking a hit from after a weaker capacity outlook for 2022, while Alcoa stock
AA,
-0.70%
is rising after an earnings beat.

Netflix
NFLX,
+0.99%
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

Weekly jobless claims and a Philadelphia Fed manufacturing survey are due at 8:30 a.m. Eastern, followed by existing-home sales.

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.

The markets

Led by the Nasdaq-100
NQ00,
+0.66%,
stock futures
ES00,
+0.35%

YM00,
+0.30%
are up, tracking gains in Asia, with the Hang Seng
HSI,
+3.42%
up over 3% and property stocks soaring after China cut lending rates. Treasury yields
TMUBMUSD10Y,
1.831%

TMUBMUSD02Y,
1.035%
are only slightly higher. European stocks
SXXP,
+0.04%
are flat after Germany reported record annual producer prices. Crude prices
CL00,
-0.57%

BRN00,
-0.66%
are slipping after three consecutive wins.

Read: Oil could break the stock market’s back if crude ‘goes parabolic’ — How to prepare

The chart

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.

The tickers

Here are the most active tickers on MarketWatch as of 6 a.m. Eastern.

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