5 Discretionary Stocks to Boost Your Portfolio on Rising Rate Cut Hopes

Economic Overview - U.S. stocks have experienced a rally due to impressive economic data, leading to optimism among investors regarding potential Federal Reserve interest rate cuts [1][8] - Expectations for a rate cut in September increased after inflation data showed a slower-than-expected rise [2][8] Inflation Data - The consumer price index (CPI) rose 0.2% month-over-month in July, lower than the consensus estimate of 0.3% [4] - Year-over-year, CPI increased by 2.7% in July, also below the expected 2.8% [5] - Core CPI, excluding food and energy, rose 0.3% in July, aligning with expectations, while year-over-year core CPI increased by 3.1%, slightly above the 3% forecast [5][6] Consumer Discretionary Stocks - Investing in consumer discretionary stocks is recommended due to the favorable economic outlook and anticipated rate cuts [2][11] - Notable consumer discretionary stocks include: - The Walt Disney Company (DIS): Expected earnings growth rate of 17.7% for the current year, with revenues of $91.4 billion in fiscal 2024 [9][10] - Carnival Corporation & plc (CCL): Expected earnings growth rate of 40.9% for the current year [12][13] - Hasbro, Inc. (HAS): Expected earnings growth rate of 19.5% for the current year [14] - Netflix, Inc. (NFLX): Expected earnings growth rate of 31.4% for the current year [15][16] - Ralph Lauren Corporation (RL): Expected earnings growth rate of 19.8% for the current year [17]