Morgan Stanley’s Wilson Says Equity Laggards Due a Catch Up

The Morgan Stanley strategist who foresaw last month’s market correction says stocks that have lagged the rally in US stocks could get a boost if data due Friday provides further evidence of a resilient economy.

A stronger-than-expected payrolls number would likely give investors “greater confidence that growth risks have subsided,” Michael Wilson, chief US equity strategist at the bank, wrote in a research note. Economists in a Bloomberg survey expect the report to show that 165,000 jobs were added last month compared with 114,000 in July.