Equity markets still face unresolved risks around trade tensions and slowing earnings revisions, which should keep investors cautious in the near-term, according to Morgan Stanley’s Michael Wilson https://t.co/YSguc1FlQ1 ...

Why don't we start off with this. What do you think's at stake with the jobs report coming up later today. I was mentioning earlier, I talked to a lot of people.They think not necessarily a market mover or they think the cuts already baked in unless we see an outside move either 10 to 15,000 to the upside or 10 to 15,000 to the downside. Yeah, there does have a feeling a little bit of deja vu. You think about a year ago, there was a couple of troubling payroll reports followed by that fullyear revision that ...

Market Outlook - Morgan Stanley is not bullish due to geopolitical conflicts, but because earnings revisions have meaningfully turned up since mid-April [3] - The market seems comfortable with the current geopolitical situation, but escalation could change this [3] - A 5% to 7% correction type of event is anticipated for now, vigilance is required [10] Earnings and Economic Momentum - Earnings revisions made a significant trough in April, indicating economic momentum [4] - The rate of change on earnings revisions, fiscal policy, tariff policy, and immigration are creating opportunities in the equity market [6] - AI capex has bottomed, contributing to the opportunity [6] Investment Strategy - Long positions are favored in capital goods companies, financials, and software [12] - Short positions are favored in consumer goods and consumer discretionary sectors [12] - Small caps are expected to continue to underperform due to high interest rates [13]