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Morgan Stanley Says Too Early to Call All Clear on S&P 500

  • Wait till guidance cuts spread or Fed takes action: Wilson
  • View contrasts with BofA and Citi advising buy the dip

Two weeks of rallies in U.S. stocks haven’t been enough to convince one widely followed Wall Street strategist to drop his cautious view on the market.

Mike Wilson, Morgan Stanley’s chief U.S. equity strategist ,whose 2018 prediction for a rolling bear market proved prescient, says in his late note to clients that, while he’s less pessimistic about stocks, investors hoping to buy the dip should be aware that Apple Inc.’s sales warning and a plunge in a gauge of U.S. manufacturing are likely the start of a new round of negative news.