{"id":81213,"date":"2023-11-06T09:08:57","date_gmt":"2023-11-06T14:08:57","guid":{"rendered":"https:\/\/ifintechworld.com\/markets\/rally-will-fizzle-out-in-a-week-or-two-morgan-stanley-strategist-wilson-says\/"},"modified":"2023-11-06T09:09:01","modified_gmt":"2023-11-06T14:09:01","slug":"rally-will-fizzle-out-in-a-week-or-two-morgan-stanley-strategist-wilson-says","status":"publish","type":"post","link":"https:\/\/ifintechworld.com\/?p=81213","title":{"rendered":"Rally will fizzle out in a week or two, Morgan Stanley strategist Wilson says"},"content":{"rendered":"
\n

What an incredible rally it was last week, in a big dash for trash as bond yields tumbled. The mostly profitless tech stocks of the ARK Innovation ETF
\n ARKK
\n rallied 19% last week, and the regional banks in the SPDR S&P Regional Banking ETF
\n KRE
\n surged 12%. <\/p>\n

Also enjoying strong gains was a group of so-called lottery stocks this column profiled in July, though those ranks included WeWork
\n WE,
\n -24.73%<\/bg-quote>,<\/span>
\n which may head to zero \u2026 which is why they\u2019re called lottery stocks.<\/p>\n

\n

You\u2019d probably not expect the bearish strategist Mike Wilson of Morgan Stanley to be impressed, and guess what, he wasn\u2019t.<\/p>\n

\u201cWe think last week\u2019s rally in stocks was mainly a function of the fall in back-end Treasury yields,\u201d says Wilson. And that drop, he said, was driven more by lower-than-expected coupon issuance and weaker economic data than anything Jerome Powell said. Continuing claims are now up more than 35% from the cycle trough, and the unemployment rate is up 0.5% from its lows, which have been important thresholds in past cycles.<\/p>\n

Wilson notes that earnings revision breadth is still in negative territory. \u201cThis year\u2019s earnings recession continues to play out, particularly at the stock level. This is one key reason why broader indices and the average stock\u2019s performance within the S&P 500 have been weaker this year,\u201d he says. And the weak economic data only bolster the bank\u2019s view that the earnings recession is not yet over.<\/p>\n

So what happens now? For asset owners and allocations, the prospect of adding additional risk at current levels is less attractive than fixed-income alternatives. \u201cWe think this group is more likely to be sellers into strength at this point,\u201d he says.<\/p>\n

In all, Wilson says the rally should \u201cfizzle out over the next week or two\u201d as it becomes clear the growth picture doesn\u2019t support either Fed cuts or a significant acceleration in earnings per share growth.<\/p>\n

Bolstering the view on the Fed side \u2014 Barclays is still calling for another Fed rate hike, though in January instead of December. <\/p>\n

The market<\/h2>\n
<\/p>\n

<\/p>\n

<\/p>\n<\/figure><\/div>\n

After the biggest week for the S&P 500
\n SPX
\n in close to a year, a gain of 5.9%, U.S. stock futures
\n ES00,
\n +0.12%<\/bg-quote><\/p>\n

NQ00,
\n +0.16%<\/bg-quote>
\n nudged higher. The yield on the 10-year Treasury
\n BX:TMUBMUSD10Y
\n was rising again. Crude-oil futures
\n CL.1,
\n +1.06%<\/bg-quote>
\n traded higher.<\/p>\n

For more market updates plus actionable trade ideas for stocks, options and crypto, subscribe to\u00a0MarketDiem by Investor\u2019s Business Daily.<\/strong><\/p>\n

The buzz<\/h2>\n

Berkshire Hathaway
\n BRK.B,
\n +0.80%<\/bg-quote>
\n released results over the weekend that showed the Warren Buffett-run company with a $157 billion cash pile. <\/p>\n

Tesla
\n TSLA,
\n +0.66%<\/bg-quote>
\n CEO Elon Musk reportedly told staffers in Germany the vehicle maker will produce a low-cost car there. <\/p>\n

South Korea reinstated a short-selling ban, sending shares of companies including Posco
\n 005490,
\n +19.18%<\/bg-quote><\/p>\n

PKX,
\n +3.47%<\/bg-quote>
\n higher. The iShares MSCI South Korea ETF
\n EWY
\n rose 6%.<\/p>\n

Ryanair
\n RYAAY,
\n +0.87%<\/bg-quote>
\n shares jumped as the airline proposed its first dividend.<\/p>\n

The Fed\u2019s senior loan officer survey comes out at 2 p.m. Lisa Cook, a Fed governor, is due to speak at 11 a.m.<\/p>\n

Best of the web<\/h2>\n

Ken Griffin criticizes proposals to clamp down on trade his firm is making. <\/p>\n

WeWork bankruptcy would deal another blow to New York office market. <\/p>\n

Trump and allies plan to punish critics and opponents should he win a second term.<\/p>\n

Top tickers<\/h2>\n

Here were the top stock-market tickers as of 6 a.m. Eastern.<\/p>\n\n\n\n\n\n\n\n\n\n\n\n\n
\n Ticker<\/p>\n<\/td>\n\n Security name<\/p>\n<\/td>\n<\/tr>\n
\n TSLA,
\n +0.66%<\/bg-quote>\n <\/td>\n		\n Tesla<\/p>\n<\/td>\n<\/tr>\n
\n AMC,
\n +2.19%<\/bg-quote>\n <\/td>\n		\n AMC Entertainment<\/p>\n<\/td>\n<\/tr>\n
\n NVDA,
\n +3.45%<\/bg-quote>\n <\/td>\n		\n Nvidia<\/p>\n<\/td>\n<\/tr>\n
\n NIO,
\n +5.65%<\/bg-quote>\n <\/td>\n		\n Nio<\/p>\n<\/td>\n<\/tr>\n
\n AAPL,
\n -0.52%<\/bg-quote>\n <\/td>\n		\n Apple<\/p>\n<\/td>\n<\/tr>\n
\n GME,
\n +1.69%<\/bg-quote>\n <\/td>\n		\n GameStop<\/p>\n<\/td>\n<\/tr>\n
\n PLTR,
\n +5.12%<\/bg-quote>\n <\/td>\n		\n Palantir Technologies<\/p>\n<\/td>\n<\/tr>\n
\n AMZN,
\n +0.38%<\/bg-quote>\n <\/td>\n		\n Amazon.com<\/p>\n<\/td>\n<\/tr>\n
\n MULN,
\n -0.94%<\/bg-quote>\n <\/td>\n		\n Mullen Automotive<\/p>\n<\/td>\n<\/tr>\n
\n MSFT,
\n +1.29%<\/bg-quote>\n <\/td>\n		\n Microsoft<\/p>\n<\/td>\n<\/tr>\n<\/table>\n

The chart<\/h2>\n
<\/p>\n

<\/p>\n

<\/p>\n<\/figure><\/div>\n

From a new research paper by Robert Barro of Harvard University and Francesco Bianchi of Johns Hopkins University, this shows the impact of government spending on inflation. The spending variable is general government primary spending to GDP, divided by the ratio of gross public debt to GDP and the estimated duration of debt. \u201cWe show that, unlike monetary policy going back to the early 2000s, the large recent fiscal interventions related to the COVID crisis \u2018succeeded\u2019 in generating high inflation,\u201d the authors say. <\/p>\n

Random reads<\/h2>\n

Here was House Speaker Mike Johnson\u2019s answer to the question of why he doesn\u2019t list having a personal bank account on his public disclosure forms. <\/p>\n

Colonel Sanders cursed this team for 38 years. <\/p>\n

The \u201cloneliest sheep\u201d in the U.K. has been rehomed, so naturally people are angry about it. <\/p>\n

Need to Know starts early and is updated until the opening bell, but sign up here to get it delivered once to your email box. The emailed version will be sent out at about 7:30 a.m. Eastern. <\/strong><\/p>\n<\/p><\/div>\n<\/div>\n

Read the full article here<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

What an incredible rally it was last week, in a big dash for trash as bond yields tumbled. The mostly profitless tech stocks of the ARK Innovation ETF ARKK rallied 19% last week, and the regional banks in the SPDR S&P Regional Banking ETF KRE surged 12%. Also enjoying strong gains was a group of […]<\/p>\n","protected":false},"author":1,"featured_media":81214,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"gallery","meta":{"footnotes":""},"categories":[241],"tags":[83],"class_list":["post-81213","post","type-post","status-publish","format-gallery","has-post-thumbnail","hentry","category-markets","tag-featured","post_format-post-format-gallery"],"yoast_head":"\nRally will fizzle out in a week or two, Morgan Stanley strategist Wilson says | iFintechWorld<\/title>\n<meta name=\"description\" content=\"What an incredible rally it was last week, in a big dash for trash as bond yields tumbled. The mostly profitless tech stocks of the ARK Innovation ETF\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/ifintechworld.com\/?p=81213\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Rally will fizzle out in a week or two, Morgan Stanley strategist Wilson says | iFintechWorld\" \/>\n<meta property=\"og:description\" content=\"What an incredible rally it was last week, in a big dash for trash as bond yields tumbled. The mostly profitless tech stocks of the ARK Innovation ETF\" \/>\n<meta property=\"og:url\" content=\"https:\/\/ifintechworld.com\/?p=81213\" \/>\n<meta property=\"og:site_name\" content=\"iFintechWorld\" \/>\n<meta property=\"article:published_time\" content=\"2023-11-06T14:08:57+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2023-11-06T14:09:01+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/11\/1699279738_social.jpeg\" \/>\n\t<meta property=\"og:image:width\" content=\"1280\" \/>\n\t<meta property=\"og:image:height\" content=\"640\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"News Room\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"News Room\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"4 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/ifintechworld.com\/?p=81213#article\",\"isPartOf\":{\"@id\":\"https:\/\/ifintechworld.com\/?p=81213\"},\"author\":{\"name\":\"News Room\",\"@id\":\"https:\/\/ifintechworld.com\/#\/schema\/person\/6224724fd4116361255b179dc5c70b61\"},\"headline\":\"Rally will fizzle out in a week or two, Morgan Stanley strategist Wilson says\",\"datePublished\":\"2023-11-06T14:08:57+00:00\",\"dateModified\":\"2023-11-06T14:09:01+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/ifintechworld.com\/?p=81213\"},\"wordCount\":788,\"commentCount\":0,\"publisher\":{\"@id\":\"https:\/\/ifintechworld.com\/#organization\"},\"keywords\":[\"Featured\"],\"articleSection\":[\"Markets\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\/\/ifintechworld.com\/?p=81213#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/ifintechworld.com\/?p=81213\",\"url\":\"https:\/\/ifintechworld.com\/?p=81213\",\"name\":\"Rally will fizzle out in a week or two, Morgan Stanley strategist Wilson says | iFintechWorld\",\"isPartOf\":{\"@id\":\"https:\/\/ifintechworld.com\/#website\"},\"datePublished\":\"2023-11-06T14:08:57+00:00\",\"dateModified\":\"2023-11-06T14:09:01+00:00\",\"description\":\"What an incredible rally it was last week, in a big dash for trash as bond yields tumbled. The mostly profitless tech stocks of the ARK Innovation ETF\",\"breadcrumb\":{\"@id\":\"https:\/\/ifintechworld.com\/?p=81213#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/ifintechworld.com\/?p=81213\"]}]},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/ifintechworld.com\/?p=81213#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/ifintechworld.com\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Rally will fizzle out in a week or two, Morgan Stanley strategist Wilson says\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/ifintechworld.com\/#website\",\"url\":\"https:\/\/ifintechworld.com\/\",\"name\":\"Repay Down\",\"description\":\"Latest Personal Finance News, Tips and Updates\",\"publisher\":{\"@id\":\"https:\/\/ifintechworld.com\/#organization\"},\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/ifintechworld.com\/?s={search_term_string}\"},\"query-input\":\"required name=search_term_string\"}],\"inLanguage\":\"en-US\"},{\"@type\":\"Organization\",\"@id\":\"https:\/\/ifintechworld.com\/#organization\",\"name\":\"Repay Down\",\"url\":\"https:\/\/ifintechworld.com\/\",\"logo\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/ifintechworld.com\/#\/schema\/logo\/image\/\",\"url\":\"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/04\/rep-logo-dark.png\",\"contentUrl\":\"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/04\/rep-logo-dark.png\",\"width\":558,\"height\":90,\"caption\":\"Repay Down\"},\"image\":{\"@id\":\"https:\/\/ifintechworld.com\/#\/schema\/logo\/image\/\"}},{\"@type\":\"Person\",\"@id\":\"https:\/\/ifintechworld.com\/#\/schema\/person\/6224724fd4116361255b179dc5c70b61\",\"name\":\"News Room\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/ifintechworld.com\/#\/schema\/person\/image\/\",\"url\":\"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/04\/avatar_user_1_1682606986-96x96.png\",\"contentUrl\":\"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/04\/avatar_user_1_1682606986-96x96.png\",\"caption\":\"News Room\"},\"sameAs\":[\"https:\/\/ifintechworld.com\"],\"url\":\"https:\/\/ifintechworld.com\/?author=1\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Rally will fizzle out in a week or two, Morgan Stanley strategist Wilson says | iFintechWorld","description":"What an incredible rally it was last week, in a big dash for trash as bond yields tumbled. The mostly profitless tech stocks of the ARK Innovation ETF","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/ifintechworld.com\/?p=81213","og_locale":"en_US","og_type":"article","og_title":"Rally will fizzle out in a week or two, Morgan Stanley strategist Wilson says | iFintechWorld","og_description":"What an incredible rally it was last week, in a big dash for trash as bond yields tumbled. The mostly profitless tech stocks of the ARK Innovation ETF","og_url":"https:\/\/ifintechworld.com\/?p=81213","og_site_name":"iFintechWorld","article_published_time":"2023-11-06T14:08:57+00:00","article_modified_time":"2023-11-06T14:09:01+00:00","og_image":[{"width":1280,"height":640,"url":"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/11\/1699279738_social.jpeg","type":"image\/jpeg"}],"author":"News Room","twitter_card":"summary_large_image","twitter_misc":{"Written by":"News Room","Est. reading time":"4 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/ifintechworld.com\/?p=81213#article","isPartOf":{"@id":"https:\/\/ifintechworld.com\/?p=81213"},"author":{"name":"News Room","@id":"https:\/\/ifintechworld.com\/#\/schema\/person\/6224724fd4116361255b179dc5c70b61"},"headline":"Rally will fizzle out in a week or two, Morgan Stanley strategist Wilson says","datePublished":"2023-11-06T14:08:57+00:00","dateModified":"2023-11-06T14:09:01+00:00","mainEntityOfPage":{"@id":"https:\/\/ifintechworld.com\/?p=81213"},"wordCount":788,"commentCount":0,"publisher":{"@id":"https:\/\/ifintechworld.com\/#organization"},"keywords":["Featured"],"articleSection":["Markets"],"inLanguage":"en-US","potentialAction":[{"@type":"CommentAction","name":"Comment","target":["https:\/\/ifintechworld.com\/?p=81213#respond"]}]},{"@type":"WebPage","@id":"https:\/\/ifintechworld.com\/?p=81213","url":"https:\/\/ifintechworld.com\/?p=81213","name":"Rally will fizzle out in a week or two, Morgan Stanley strategist Wilson says | iFintechWorld","isPartOf":{"@id":"https:\/\/ifintechworld.com\/#website"},"datePublished":"2023-11-06T14:08:57+00:00","dateModified":"2023-11-06T14:09:01+00:00","description":"What an incredible rally it was last week, in a big dash for trash as bond yields tumbled. The mostly profitless tech stocks of the ARK Innovation ETF","breadcrumb":{"@id":"https:\/\/ifintechworld.com\/?p=81213#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/ifintechworld.com\/?p=81213"]}]},{"@type":"BreadcrumbList","@id":"https:\/\/ifintechworld.com\/?p=81213#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/ifintechworld.com\/"},{"@type":"ListItem","position":2,"name":"Rally will fizzle out in a week or two, Morgan Stanley strategist Wilson says"}]},{"@type":"WebSite","@id":"https:\/\/ifintechworld.com\/#website","url":"https:\/\/ifintechworld.com\/","name":"Repay Down","description":"Latest Personal Finance News, Tips and Updates","publisher":{"@id":"https:\/\/ifintechworld.com\/#organization"},"potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/ifintechworld.com\/?s={search_term_string}"},"query-input":"required name=search_term_string"}],"inLanguage":"en-US"},{"@type":"Organization","@id":"https:\/\/ifintechworld.com\/#organization","name":"Repay Down","url":"https:\/\/ifintechworld.com\/","logo":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/ifintechworld.com\/#\/schema\/logo\/image\/","url":"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/04\/rep-logo-dark.png","contentUrl":"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/04\/rep-logo-dark.png","width":558,"height":90,"caption":"Repay Down"},"image":{"@id":"https:\/\/ifintechworld.com\/#\/schema\/logo\/image\/"}},{"@type":"Person","@id":"https:\/\/ifintechworld.com\/#\/schema\/person\/6224724fd4116361255b179dc5c70b61","name":"News Room","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/ifintechworld.com\/#\/schema\/person\/image\/","url":"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/04\/avatar_user_1_1682606986-96x96.png","contentUrl":"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/04\/avatar_user_1_1682606986-96x96.png","caption":"News Room"},"sameAs":["https:\/\/ifintechworld.com"],"url":"https:\/\/ifintechworld.com\/?author=1"}]}},"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/ifintechworld.com\/index.php?rest_route=\/wp\/v2\/posts\/81213","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/ifintechworld.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/ifintechworld.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/ifintechworld.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/ifintechworld.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=81213"}],"version-history":[{"count":1,"href":"https:\/\/ifintechworld.com\/index.php?rest_route=\/wp\/v2\/posts\/81213\/revisions"}],"predecessor-version":[{"id":81215,"href":"https:\/\/ifintechworld.com\/index.php?rest_route=\/wp\/v2\/posts\/81213\/revisions\/81215"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/ifintechworld.com\/index.php?rest_route=\/wp\/v2\/media\/81214"}],"wp:attachment":[{"href":"https:\/\/ifintechworld.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=81213"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/ifintechworld.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=81213"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/ifintechworld.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=81213"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}