Lates News

Morgan Stanley strategists say that large-cap stocks in the United States are attractive because they are expected to benefit from fiscal spending bills and strong earnings prospects. The team led by Michael Wilson believes that the tax reform bill could improve cash flow, thereby supporting investment logic in sectors such as technology, telecommunications, healthcare, and energy. Furthermore, the breadth of earnings expectations revisions has significantly improved, with analysts raising profit forecasts outnumbering those lowering them, boosting investor sentiment amidst ongoing trade uncertainty, Wilson points out. He reiterates a preference for the financial and industrial sectors and notes that profit expectations in these sectors have seen significant upward revisions recently. "The new tax reform bill is favorable for large-cap stock indices, as well as strong earnings revisions," Wilson writes in the report.