Best Defensive Stocks to Buy

Plus: Is Apple a buy before earnings, Alphabet’s new dividend, and why you need to know about the PCE report. [Morningstar](?utm_source=eloqua&utm_medium=email&utm_campaign=newsletter_smartinvestor&utm_content=53715&elqTrackId=3704a294e42f4bf5804aa4744e1a24a8&elq=2593a41d134247659214ff5deb26fbfd&elqaid=53715&elqat=1&elqCampaignId=27248) [Smart Investor] Smart Investor [Tom Lauricella, chief markets editor]( Connect with Tom on [LinkedIn]( [Tom Lauricella] In this week's newsletter: - [With Sticky March PCE Inflation, When Will the Fed Hit Its 2% Target?]( - [What’s the Difference Between the CPI and PCE Indexes?]( - [What History Tells Us About the Fed’s Next Move]( - [Alphabet’s Dividend: What Investors Need to Know]( - [Is Apple Stock a Buy Going Into Earnings?]( - [The Best Defensive Stocks to Buy]( Big Tech earnings good, inflation bad. That’s pretty much the state of play after the past week of first-quarter earnings reports and the latest economic news. We have seen solid results from heavyweight technology stocks. You can find our analysts’ takes on [Microsoft]( [Alphabet]( and [Meta](. Tesla also [offered investors]( some long-sought reassurance about its outlook. Of course, we’ve got plenty more on the earnings front to come, including Apple’s report late Thursday. We’ve got a look at what Morningstar analyst William Kerwin will be watching in [Apple’s earnings]( and his outlook for the stock. For a complete look at Morningstar’s takes on first-quarter earnings, [check out our new company earnings page](. One surprise this past week came as Alphabet announced it will start paying a dividend. David Harrell, editor of the Morningstar Dividend Investor newsletter, offers his take on [what you need to know about the newest tech dividend payer](. But confusing matters for the markets, the latest inflation data has the outlook for Federal Reserve rate cuts looking bleaker. The Personal Consumption Expenditures Price Index showed inflation was [hotter than expected in March](. This report has long lived in the shadow of the Consumer Price Index, but it’s now gaining in importance. What is the PCE, and why does it matter? [Sarah Hansen explains](. The PCE report came just ahead of this week’s Fed policy meeting. The central bank is expected to again hold rates steady, and the big question is how long that will continue. Investors often look to the past to assess what may lay ahead, and when it comes to Fed policy, for some, the comparison point has been the course of interest rates in 1995. What happened back then, and what lessons can we draw? [We take a look](. Elsewhere we’ve got a new set of stock picks for you, starting with [five growth stocks]( from the top money managers, the [10 best blue chip stocks for long-term investors]( and the [best defensive stocks]( for investors looking to add stability to their portfolios. As always, check out our [Markets page]( for our latest coverage and live stock market updates, along with our [weekly calendar]( of key upcoming data and events. Did a friend forward this email? [Sign up here](. [The Best Defensive Stocks to Buy]( [The Best Defensive Stocks to Buy]( These 10 defensive stocks supply investors with reliable earnings, and often dividends, when markets look uncertain. Tori Brovet [See Picks]( Share: [facebook]( [twitter]( [linkedin]( ADVERTISEMENT [media]( [media] Markets and the Economy [With Sticky March PCE Inflation, When Will the Fed Hit Its 2% Target?]( [With Sticky March PCE Inflation, When Will the Fed Hit Its 2% Target?]( March PCE inflation index up 2.7%, stronger than expected. Tom Lauricella [What’s the Difference Between the CPI and PCE Indexes?]( [What’s the Difference Between the CPI and PCE Indexes?]( Inflation is top of mind for investors, but there’s more than one way to measure consumer prices. Sarah Hansen [What History Tells Us About the Fed’s Next Move]( [What History Tells Us About the Fed’s Next Move]( The Fed has been here before—sort of. Sarah Hansen [Going Into Earnings, Is Apple Stock a Buy, a Sell, or Fairly Valued?]( [Going Into Earnings, Is Apple Stock a Buy, a Sell, or Fairly Valued?]( Amid concerns about iPhone sales, here’s what we think of Apple stock. William Kerwin [Going Into Earnings, Is Albemarle Stock a Buy, a Sell, or Fairly Valued?]( [Going Into Earnings, Is Albemarle Stock a Buy, a Sell, or Fairly Valued?]( With continued uncertainty about lithium prices, here’s what we think of Albemarle stock. Seth Goldstein [Going Into Earnings, Is Eli Lilly Stock a Buy, a Sell, or Fairly Valued?]( [Going Into Earnings, Is Eli Lilly Stock a Buy, a Sell, or Fairly Valued?]( Watching sales growth in Zepbound and Mounjaro, here’s what we think of Eli Lilly stock. Damien Conover [Going Into Earnings, Is Palantir Stock a Buy, a Sell, or Fairly Valued?]( [Going Into Earnings, Is Palantir Stock a Buy, a Sell, or Fairly Valued?]( Watching for progress on AI efforts, here’s what we think of Palantir stock. Malik Ahmed Khan [After Earnings, Is Netflix Stock a Buy, a Sell, or Fairly Valued?]( [After Earnings, Is Netflix Stock a Buy, a Sell, or Fairly Valued?]( With strong subscription growth, here’s what we think of Netflix stock. Matthew Dolgin [After Earnings, Is Charles Schwab Stock a Buy, a Sell, or Fairly Valued?]( [After Earnings, Is Charles Schwab Stock a Buy, a Sell, or Fairly Valued?]( With an increase in revenues, here’s what we think of Schwab’s stock. Michael Wong [5 Stocks to Buy That We Still Like After They’ve Run Up]( [5 Stocks to Buy That We Still Like After They’ve Run Up]( Plus, expectations for big tech this week and our take on regional banks and Netflix after earnings. David Sekera, Susan Dziubinski [Alphabet’s New Dividend: What Investors Need to Know]( [Alphabet’s New Dividend: What Investors Need to Know]( The news is big, but the yield on Alphabet stock will be modest. David Harrell [Are You an Investment Historian or a Futurist?]( [Are You an Investment Historian or a Futurist?]( Each approach has its advantages—and drawbacks. John Rekenthaler [5 Growth Stocks to Buy From the Best Money Managers]( [5 Growth Stocks to Buy From the Best Money Managers]( These stock picks are popular with top-rated concentrated small- and mid-cap growth fund managers—and they’re undervalued, too. Susan Dziubinski [What’s Happening In the Markets This Week]( [What’s Happening In the Markets This Week]( Jobs report, FOMC meeting, and earnings from Apple and Amazon ahead. Bella Albrecht [When Low Risk Means High Risk]( [When Low Risk Means High Risk]( Investment caution can be dangerous, too. John Rekenthaler Recent Earnings [Microsoft: Firm Beats Forecasts on Strong AI and Cloud Demand]( [STMicro: We Still See an Attractive Margin of Safety Despite a Poor First-Half Forecast]( [Alphabet: Shares Surge on Strong Earnings, Dividend Surprise]( [Meta: Stock Now Fairly Valued After Latest Selloff]( [Snap: Advertising Growth and Snapchat+ Drive Monetization]( [AT&T: Network Outage Didn’t Stop Solid Growth or Cash Flow]( [Verizon: Price Increases Drive Solid Wireless Revenue Growth]( [Zions: Steady Start to 2024 With Stable Net Interest Margin and Mostly Benign Credit]( [Visa: Growth Holds Steady]( [Truist: Expense Control Is Working and Near-Term Capital Flexibility Is Crucial to Growth]( [ServiceNow: Strong Quarter With In-Line Guidance and Increasingly Attractive Valuation]( [PG&E: Near-Term Regulatory Certainty Supports Industry-Leading Earnings Growth]( [Ford: Pro Continues to Impress While EV Costs Are Contained]( [GE Aerospace: Fantastic Prospects for Stand-Alone Jet Engine Maker]( [American Airlines: We See Costs Overshadowing Market Share This Year]( [Boeing: Paying for Mistakes Made Long Ago, Taking Back the Factory Floor]( [AbbVie: Next-Generation Immunology Drugs Help Offset Humira Biosimilar Pressure]( [Exxon: Ignore Earnings Shortfall as Long-Term Growth and Improvement on Track]( [Morningstar Company Reports]( For a complete look at Morningstar’s take on first-quarter earnings, check out our new company earnings page and discover actionable insights today. Get Top Stock Picks and Market Insights Every Week on The Morning Filter. Every Monday morning, Susan Dziubinski sits down with Morningstar Chief U.S. markets strategist Dave Sekera to discuss what's on his radar, new Morningstar research, and stock picks or plans for the week ahead. [Watch Now.](morningstar/streams?utm_source=eloqua&utm_medium=email&utm_campaign=newsletter_smartinvestor&utm_content=53715) Stay connected: [twitter]( [facebook]( [linkedin]( [instagram]( [YouTube]( [Apple News]( [View online]( | [See all newsletters]( | [Share your feedback]( [Unsubscribe]( from this newsletter. Or update your [email preferences](. © 2024 Morningstar, Inc. All Rights Reserved. 22 W. Washington St. Chicago, IL 60602