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These stocks win when interest rates rise, according to Goldman


Interest rates are on a tear this week, sending stocks toward their biggest weekly loss since March. But some names could stay above the fray because of their historical track record of winning when yields climb. The benchmark 10-year Treasury yield reached its highest level in sixteen years this week, boosted by the Federal Reserve’s plan to keep rates higher for longer, as well as continued signs of strength in the jobs market. Goldman Sachs has provided clients a basket of stocks with positive price sensitivity to a higher 10-year Treasury yield. In other words, their share prices typically gain when longer-term rates rise. Here are some of the stocks that made the list: Cloud software firm Salesforce stock has soared more than 57% from the start of the year, boosted by back-to-back earnings beats and investor excitement over artificial intelligence. Chief executive Marc Benioff thinks growth with continue to accelerate from its messaging platform Slack, which he said earlier in September could be a pivotal leader in AI . Shares have been more muted this week with a nearly 7% pullback. CRM YTD mountain Salesforce stock. Airplane giant Boeing , meanwhile, has ticked up roughly 5% from the start of 2023. The company said in August that a flaw with fastener holes in its 737 Max will slow down deliveries . The company reported mixed quarterly results in July with an earnings miss and a revenue beat . Shares have lost nearly 9% from Monday. BA YTD mountain Boeing stock. In the materials basket, fertilizer producer Mosaic stock has slipped more than 15% from the start of the year. Shares have trended lower in recent days due to a ruling from the Court of International Trade over phosphate imports , declining about 5% from Monday. But historically, Mosaic has traded higher when rates increase. MOS YTD mountain Mosaic stock. To be sure, some of these stocks could be hurt if this rise in rates triggers a recession. Boeing, for example, would benefit if rates are rising because of a strong economy. But if rates continue to rise because of inflationary forces and the economy rolls over, Boeing may break from its historic precedent. — CNBC’s Michael Bloom contributed to this report.

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