Economic Overview - Wall Street has shown resilience despite fears of a weakening economy, although major indexes have experienced volatility recently [1][2] - The U.S. economy added only 22,000 jobs in August, significantly below the consensus estimate of 75,000, with the unemployment rate rising to 4.3% [5][6] - Consumer confidence has declined, with a drop from 98.7 in July to 97.4 in August [9] Federal Reserve and Interest Rates - Hopes for a rate cut by the Federal Reserve in September have somewhat improved investor sentiment, with an 89% chance of a 25 basis point cut anticipated [8] - Inflation has decreased but remains a concern due to new tariffs imposed by President Trump, which have created additional price pressures [7][8] Investment Recommendations - It is advisable to focus on low-beta, defensive stocks, particularly in the utilities sector, to navigate current market volatility [3][4] - Recommended stocks include: - Atmos Energy Corporation (ATO): Expected earnings growth of 7.3%, dividend yield of 2.09%, beta of 0.75 [11][13] - OGE Energy (OGE): Expected earnings growth of 4.1%, dividend yield of 3.2%, beta of 0.60 [11][14] - Fortis, Inc. (FTS): Expected earnings growth of 4.6%, dividend yield of 3.61%, beta of 0.48 [11][15] - Northwest Natural Holding Company (NWN): Expected earnings growth of 25.3%, dividend yield of 4.68%, beta of 0.59 [11][17]
Buy These 4 Low-Beta Utility Stocks to Navigate Market Volatility