Fed playbook: Which stocks to buy or sell depending on what the Fed does

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CNBC Pro screened for names screened that are the most sensitive to interest rates by looking at the 100-day correlation between each S&P 500 stock and SHY ETF.

As investors look to position based on the Federal Reserve's path of rate hikes, certain names stand out as winners — depending on the direction the central bank takes. The Fed is widely expected to increase its benchmark borrowing rate by a quarter percentage point on Wednesday, bringing it to a target range between 5%-5.25%. What investors are focused on is whether the central bank signals it is leaving the door open to more increases or is done hiking.

Illumina is in the middle of a proxy fight with activist investor Carl Icahn over its acquisition of cancer test developer Grail. Icahn, who has a 1.4% stake in the company, slammed the company's "very disappointing" first-quarter results and its plans to cut costs. In an open letter to shareholders , Icahn said CEO Francis deSouza was "desperately, hilariously and, most of all, unsuccessfully" trying to spin the "decidedly mediocre" quarterly results.

 

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