Dow futures gain slightly after the three major averages notched a second day of losses

These stocks are poised for a comeback if inflation peaks, Jefferies saysA slowdown could be on the horizon, and more earnings downgrades ahead have been predicted. If inflation also peaks, as some analysts expect it to, that mix of factors will favor one class of stocks, Jefferies says.Jefferies produced a screen of such stocks that investors can buy, based on a list of metrics which include high profitability, reasonable valuations and good cashflows. Pro subscribers can read the story here.— Weizhen TanPayPal rises on earnings, share buyback announcementPayPal shares soared by more than 11% after hours. The payments company beat analysts’ earnings and revenue estimates for the second quarter and issued upbeat full-year guidance. PayPal also announced a $15 billion share repurchasing program.Stock buybacks provide a way for companies to boost their per-share earnings and enhance the value of their stock, particularly while the market across the board suffers steep price declines this year. The company kicked off a $10 billion program four years ago.Elliott Management said it has a $2 billion stake in the payments giant. PayPal announced that it entered an information-sharing agreement on value creation with the activist investor.— Tanaya MacheelDespite Fedspeak about fighting inflation, an ‘easing cycle’ is emerging says Leuthold’s Jim PaulsenLeuthold Group chief investment strategist Jim Paulsen said that despite the Federal Reserve’s “ongoing lip service toward fighting inflation” by tightening monetary policy, there are several factors that suggest the market may be entering an “emerging easing cycle.”Bond yields have achieved a sizable rate cut, the dollar is finally rolling over and junk spreads have pulled back, he said in a note to investors late Tuesday. “The media, policy officials, and investors focus primarily on the war against inflation and how aggressively the Fed will need to keep hiking rates,” Paulsen said. “Yet, with real economic growth already reduced to a crawl and evidence building that inflation is easing, the case for further Fed tightening at its September meeting is rapidly falling apart.””Investors should place appropriate weight on the leading nature of economic policies,” he added. “Tightening today means lower real and nominal growth tomorrow.”— Tanaya MacheelMatchGroup shares tumble after hoursShares of the dating app operator Match Group tumbled as much as 23% after the company reported revenue of $795 million for the second quarter, compared with FactSet estimates of $803.9 million. Match also issued weak guidance around adjusted operating income and revenue for the current quarter.— Tanaya Macheel

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