Weekly Warm-up The Winds of Change

Morgan Stanley reports a broadening of US equity market performance as earnings growth recovers across the median stock. Strategists recommend pivoting toward Consumer Discretionary, Transports, and Regional Banks while expecting Semiconductor momentum to fade.

Key Takeaways

• 1.Breadth is improving in the US equity market as equal-weighted indices outperform, driven by a broad recovery in median stock earnings.
• 2.The firm expects lower energy prices and contained inflation to keep the Fed on hold rather than hiking rates this year.
• 3.Semiconductor momentum is likely to fade, fueling a rotation toward cyclical sectors like Discretionary Goods, Transports, and Regional Banks.

Table of Contents

• Weekly Warm-up: The Winds of Change
• The Winds of Change
• What Are Consumers Telling Us?
• Fresh Money Buy List
• Weekly Charts to Watch
• Disclosure Section
• Analyst Certification

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