Screening Filters
Market Cap ≥ $5B ('market_cap': {'min': '5000000000'})
- Purpose: Focus on larger, more liquid companies.
- Rationale:
- When the Fed is internally divided on interest rates, the main impact is felt through broad shifts in yields, risk premia, and sentiment.
- Large‑cap names are typically more:
- Heavily owned by institutions
- Incorporated into indexes and macro trades
- As a result, they tend to react more cleanly and immediately to Fed policy expectations than thinly traded small caps, where stock-specific issues often dominate.
High Beta ('beta': ['HighRisk'])
- Purpose: Capture stocks that historically move more than the market when macro conditions change.
- Rationale:
- Internal Fed disagreements increase uncertainty about the future path of rates.
- Higher uncertainty → larger swings in risk assets as expectations get repriced.
- High‑beta stocks amplify these macro moves, making them more sensitive to shifts in Fed narratives and rate expectations.
Sectors: Banking, Real Estate, Utilities, Industrials
('sector': ['Banking & Investment Services', 'Real Estate', 'Utilities', 'Industrials'])
- Purpose: Target sectors whose fundamentals and valuations are tightly linked to interest rates and economic conditions.
- Rationale by sector:
- Banking & Investment Services:
- Net interest margins, loan growth, funding costs, trading revenue, and capital markets activity all depend heavily on rate levels and the yield curve.
- Fed disagreements about the path of rates can change expectations for all of the above, so banks and brokers tend to move on every shift in rate narrative.
- Real Estate (including REITs):
- Property values and REIT valuations are highly sensitive to discount rates and financing costs.
- Even modest changes in rate expectations (or uncertainty about them) can materially shift cap rates and REIT NAV estimates.
- Utilities:
- Often treated as “bond proxies” because of their stable cash flows and high dividends.
- When rate expectations rise or become less certain, the relative appeal of their yields vs. Treasuries changes, impacting valuations.
- Industrials:
- Cyclical and often capital‑intensive.
- Rate expectations influence capex decisions, borrowing costs, and demand outlook (via the macro cycle), so Fed signals and internal dissent can meaningfully influence these names.
Industries Within Those Sectors
('industry': [...])
Included industries:
Investment Banking & Investment Services
Banking Services
Residential & Commercial REITs
Real Estate Operations
Electric Utilities & IPPs
Multiline Utilities
Natural Gas Utilities
Homebuilding & Construction Supplies
Construction & Engineering
Machinery Tools Heavy Vehicles Trains & Ships
Purpose: Drill down into the most rate‑sensitive and macro‑sensitive sub‑industries within the chosen sectors.
Rationale (selected highlights):
- Investment Banking, Banking Services: Directly impacted by credit demand, capital markets activity, and yield curve shape, all influenced by Fed policy direction and uncertainty.
- Residential & Commercial REITs / Real Estate Operations: Mortgage rates, cap rates, and property financing are all linked to the Fed’s stance and the market’s expectations around it.
- Electric / Multiline / Natural Gas Utilities: Heavily regulated, stable cash flows; valuations move with the relative attractiveness of their dividends vs. bond yields.
- Homebuilding & Construction Supplies:
- Extremely sensitive to mortgage rates and housing affordability.
- Fed disagreements that change the path of rates can impact housing demand quickly.
- Construction & Engineering; Machinery & Heavy Vehicles:
- Big-ticket, often financed projects; capex cycles depend on growth expectations and cost of capital.
- Fed uncertainty around rates can cause swings in expectations for industrial demand and infrastructure spending.
Listing Exchange: NYSE, NASDAQ, AMEX
('list_exchange': ['XNYS', 'XNAS', 'XASE'])
- Purpose: Restrict to major U.S. exchanges.
- Rationale:
- Fed policy is U.S.-centric; its most direct and immediate impact is on U.S. markets.
- Limiting to NYSE/NASDAQ/AMEX ensures the stocks are:
- Directly exposed to U.S. interest rates and monetary policy
- Typically better regulated and more liquid, improving reliability of price reactions to Fed news.
Optionable Stocks Only
('is_optionable': 'True')
- Purpose: Ensure each stock can be traded using options.
- Rationale:
- Fed disagreements heighten event risk around FOMC meetings, speeches, and data releases.
- Traders and investors often want to:
- Hedge exposure
- Express directional or volatility views
- Requiring options availability ensures the screened names are actually usable in strategies that specifically target Fed‑driven volatility and rate expectations.
Analyst Consensus: Strong Buy or Moderate Buy
('analyst_consensus': ['Strong Buy', 'Moderate Buy'])
- Purpose: Focus on names where fundamentals are viewed positively, so Fed/rate dynamics are likely to be a key driver of near‑term moves rather than company‑specific distress.
- Rationale:
- If a stock is “Sell” rated due to structural problems, its price may move mainly on idiosyncratic risks, masking the clean impact of Fed policy shifts.
- By filtering to consensus “Buys,” you isolate companies where:
- Underlying business outlook is relatively solid
- Macro variables like rates, growth, and funding conditions are among the main swing factors
- This makes it easier to interpret how Fed disagreements specifically influence valuations.
Why Results Match the User’s Question
So, while the question is about macro impact, these filters narrow the universe to stocks where that impact is most visible and tradable.
This list is generated based on data from one or more third party data providers. It is provided for informational purposes only by Intellectia.AI, and is not investment advice or a recommendation. Intellectia does not make any warranty or guarantee relating to the accuracy, timeliness or completeness of any third-party information, and the provision of this information does not constitute a recommendation.