This pick list highlights constituents of the Morningstar US Large Cap Index that we believe offer investors the best risk-adjusted return prospects. Stocks of large-cap companies where neither growth nor value characteristics predominate. Stocks in the top 70% of the capitalization of the U.S. equity market are defined as large cap.

Created from the international operations of Altria in 2008, Philip Morris International sells cigarettes and reduced-risk products, including heatsticks, vapes, and oral nicotine offerings primarily outside of the US. With the 2022 acquisition of Swedish Match, a leading manufacturer of traditional oral tobacco products and nicotine pouches primarily in the US and Scandinavia, PMI has not only diversified away from smokeable products but also gained a toehold into the US to sell its iQOS heatsticks.

Philip Morris International manufactures and sells cigarettes, other nicotine-containing products, smoke-free products, and related electronic devices and accessories. PMI has invested more than $10 billion to develop and commercialize smoke-free products for adults who would otherwise continue to smoke, with the goal of completely ending the sale of cigarettes. As of December 31, 2023, PM's smoke-free products were available for sale in 84 markets. Philip Morris International was spun off from Altria in 2008. The company has approximately 82,700 employees. The shares are a component of the S&P 500.

Markets are flat at midday, though the Nasdaq is making a push higher. Calm waters on a Monday feels good after last week's turbulence. It is a busy week. On Wednesday, CPI data comes out. We see July matching June. That's 3.0% for overall inflation and 3.1% for Core inflation, which takes out energy and food prices. Thursday will be important for signals on how consumers are holding up. Retail Sales data is due and earnings from mega-giant retailer, Walmart.