As investors look to position based on the Federal Reserve’s path of rate hikes, certain names stand out as winners — depending on the direction the central bank takes. The Fed is widely expected to increase its benchmark borrowing rate by a quarter percentage point on Wednesday, bringing it to a target range between 5%-5.25%. What investors are focused on is whether the central bank signals it is leaving the door open to more increases or is done hiking. If the Fed opts to pause, Treasury yields are expected to decline. Yields and prices move inversely to one another. The two-year Treasury is most sensitive to the Fed’s monetary policy. With that in mind, CNBC Pro screened for the stocks most sensitive to rates. We looked at the 100-day correlation between each S & P 500 stock and the iShares 1-3 Year Treasury Bond ETF (SHY), which tracks the value of 1-year to 3-year Treasurys. A higher SHY indicates short-term rates are falling, and vice versa. Stocks that could gain on falling interest rates Here are the top stocks that are poised to move higher if the Fed signals it will pause rate increases. Newmont has the highest rolling 100-day correlation to the SHY, meaning if the ETF moves higher the stock will likely follow. Since yields move inversely to prices, the fund will rise if interest rates fall. The gold miner benefits from a rise in gold prices and in general, gold tends to rise when interest rates fall. The precious metal, known as a hedge against inflation, hovered above $2,000 on Wednesday , a key level for investors. Shares of Newmont are up nearly 2% so far this year. Several energy names also made the list, with WEC Energy and Xcel Energy leading the sector’s correlation. WEC Energy has gained about 1.6% year to date, while Xcel Energy lost 1.4%. Meanwhile, genetics company Illumina should gain if interest rates fall, according to its correlation to the SHY ETF. Illumina is in the middle of a proxy fight with activist investor Carl Icahn over its acquisition of cancer test developer Grail. Icahn, who has a 1.4% stake in the company, slammed the company’s “very disappointing” first-quarter results and its plans to cut costs. In an open letter to shareholders , Icahn said CEO Francis deSouza was “desperately, hilariously and, most of all, unsuccessfully” trying to spin the “decidedly mediocre” quarterly results. Illumina posted quarterly revenue of $1.09 billion, topping the $1.07 billion expected from analysts polled by StreetAccount….
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