Morgan Stanley’s Wilson Says Rates Take Shine Off Solid Earnings
- US firms beating expectations still see muted stock reactions
- Wilson sees more weakness unless Fed sends dovish signals
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The pressure from higher Treasury yields is taking the shine off an upbeat earnings season for Corporate America, according to Morgan Stanley’s Michael Wilson.
The strategist said that although the share of companies beating analysts’ profit estimates was “strong,” the reaction in share prices was still muted as valuations were inflated following a record-breaking rally this year.