Goldman Sachs: U.S. economic expansion to continue

In a note from Goldman's David Kostin issued on Tuesday morning, the company says it expects the U.S. economic expansion to continue in important areas such as housing, the labor market, and consumer spending. 

The team is going to keep a close eye on big data releases next week, including ISM manufacturing and one of the most important job reports in a while. Despite its confidence that spillover effects will be limited, Goldman is recommending stocks that have limited exposure to the global turmoil.

 Simply put, firms with high U.S. sales will experience limited impact on their top and bottom line from economic weakness in China. In Exhibit 17 we highlight a list of 25 stocks that have declined in price roughly twice as much as the S&P 500 since the index hit a high in May and also generate nearly all their sales domestically.

• According to the note, stocks with the highest U.S. revenue exposure have been significantly outperforming those with the highest international exposure. Goldman expects this trend to continue.