Morgan Stanley(US:MS) Benzinga·2026-01-09 08:42Group 1: Market Outlook - Morgan Stanley's Chief Investment Officer Mike Wilson presents a bullish outlook for the U.S. equity market, predicting high teens earnings growth and focusing on the consumer goods sector [1][5] - Wilson describes the market's path as "crystal clear," driven by a stabilizing Federal Reserve and legislative support that will rejuvenate the consumer sector [2][6] Group 2: Consumer Goods Sector - The consumer goods sector is identified as a top conviction pick for the year, expected to rebound after a "rolling recession" [2] - Wilson highlights favorable factors such as falling interest rates and fiscal stimulus that will unlock pent-up demand in the consumer goods sector [2][3] Group 3: Earnings and Federal Reserve Support - Wilson argues that the earnings picture is strengthening, forecasting earnings growth in the "high teens" as the market rally expands beyond the tech sector [5] - A key factor in this optimism is the Federal Reserve's shift in policy, including asset purchases to stabilize funding markets, which Wilson views as a significant support for investors [6] Group 4: Market Performance - The Dow Jones U.S. Consumer Goods Index has shown a performance of 9.62% over the last six months, while year-to-date performance is at -1.40% [4] - The iShares US Consumer Staples ETF has a one-year performance of 5.25%, indicating some resilience in the consumer staples segment [4] Group 5: General Market Trends - Year-to-date, the S&P 500 index is up 0.63%, and the Dow Jones is up 2.41%, while the Nasdaq 100 is down by 0.07% [9] - The SPDR S&P 500 ETF Trust and Invesco QQQ Trust ETF closed lower recently, with SPY down 0.01% and QQQ down 0.60% [10]