Wobbles aside, it’s been a pretty impressive week for stocks thus far — 5%-plus gains across the board, which has sparked some market-bottom talk.
But big data is coming — Friday’s payrolls numbers and next week’s CPI — both important cogs in the Fed’s decision-making wheel and market direction. “We’re about to get an influx of data showing just how fractured the economy could be after a year of rate hikes,” Callie Cox, U.S. investment analyst at eToro, tells clients.
The first pick is Canadian-listed PrairieSky Royalty PSK , which invests and holds royalty interests in oil and natural gas properties in the country. As the manager explains, most energy related companies are very capital intensive, such as Exxon Mobil XOM , which spends big to explore and extract oil and gas.
His second idea is multinational food processing and commodities trading group Archer Daniels Midland ADM , which plays into the idea of higher food prices for longer, with more demand in countries such as China and India and struggles on the supply side as war-driven fertilizer shortages cause smaller crops in Western countries.
And a lot of these products, whether it be renewables or real estate, rents or tolls are often linked to a market-based measure “and the world is going to be starved for rising real yields as opposed to these fixed yields,” he said. Rather than animal spirits, the midday bounce for the S&P 500 on Wednesday was credit to a big options trade, according to Wells Fargo.Atlanta Fed President Raphael Bostic said he thinks the central bank should pause with hikes after December. Thursday’s Fed speakers include Cleveland President Loretta Mester, who speaks twice, and Fed Gov. Lisa Cook, making her debut speech at the central bank.Best of the web Europe’s biggest natural gas field is totally unusable.U.S.