Us Equity Strategy Data Pack

The report highlights a broadening earnings recovery across the US market, with a preference for cyclical sectors including Industrials and Financials. Morgan Stanley anticipates that falling energy prices will support Fed policy stability, aiding the continued expansion of the current equity cycle.

Key Takeaways

• 1.Market breadth is improving as equal-weighted indices outperform, driven by a broad-based recovery in median stock earnings growth.
• 2.The Federal Reserve remains on hold as falling energy prices and contained inflation indicators mitigate the need for rate hikes.
• 3.The 'rolling recession' has ended and transitioned into a new 'rolling recovery', supporting a preference for cyclicals over defensive sectors.

Table of Contents

• Narrative
• Earnings & Valuation
• Quant
• Sector Views
• Macro & Misc.

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