Wall Street did not get the inflation report it wanted.
The July Personal Consumption Expenditures (PCE) price index rose 3.7% year-on-year, matching June but exceeding economists’ 3.6% forecast, while core PCE increased 3.3%.
Yet the report was not uniformly negative for stocks.
Personal income climbed 0.4% in July, disposable income rose 0.5%, and consumer spending went up 0.2%, suggesting the economy remains capable of absorbing higher prices.
The result is a market environment that favors companies with pricing power, resilient demand, and business models capable of benefiting from higher-for-longer rates. Here are three stocks that experts like.
JPMorgan Chase (JPM)
JPMorgan stock stands out as “one of the clearest beneficiaries” of the PCE report that keeps the Federal Reserve cautious.
Sticky inflation makes aggressive rate cuts harder to justify, potentially allowing banks to preserve stronger net interest income for longer.
That matters for JPM, whose Q1 net interest income reached $25.5 billion, up 9% year over year, while the bank’s second-quarter financials were even stronger, with earnings of $7.70 per share on $57.35 billion in revenue.
The PCE report also points to an economy that has not collapsed under higher borrowing costs.
That’s important for JPMorgan as healthy consumer and business activity supports loan demand, card balances, payments and investment banking.
Note that the bank also reported record Q2 profit in July, giving investors a solid earnings cushion as the rate outlook remains uncertain.
All in all, JPMorgan is positioned to turn “higher for longer” from a macroeconomic headache into an earnings advantage.
Dollar General (DG)
Dollar General stock offers a very different way to play the latest PCE figures.
Inflation at 3.7% means American households are still facing meaningfully higher prices than a year ago, while the 0.2% monthly increase in consumer spending suggests shoppers remain active but increasingly selective.
That backdrop can favour discount retailers as consumers look for ways to stretch their budgets without abandoning everyday purchases.
The timing is particularly interesting because DG just raised its full-year earnings guidance and announced a new share-repurchase plan. Its stock price jumped 6% following the announcement, according to Charles Schwab.
That combination of resilient demand and an increasingly value-conscious consumer gives Dollar General an attractive setup.
Unlike discretionary retailers dependent on consumers feeling wealthy, DG can potentially benefit when households become more price-sensitive. The latest PCE report therefore reinforces, rather than undermines, the investment case for the discount retailer.
ExxonMobil (XOM)
ExxonMobil stock is another compelling choice, although its PCE connection is more indirect.
A 3.7% inflation rate reinforces the value of owning businesses whose revenues are tied to essential commodities and whose assets can generate substantial cash flow when energy prices remain elevated.
Oil and gas companies can also provide a degree of protection against an inflationary environment because energy itself is a major component of household and business costs.
Exxon enters this environment from a position of considerable financial strength.
The company generated $23.6 billion in operating cash flow and $17.2 billion in free cash flow during the second quarter of 2026, while returning $9.4 billion to shareholders through dividends and buybacks.
Its Guyana production growth and integrated business model add further support. XOM was trading around $158.19 at the August 26 close, below its 52-week high of $176.41.
For investors worried that sticky inflation could keep rates elevated and pressure traditional growth stocks, Exxon offers a profitable, cash-generative alternative.
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