Morgan Stanley’s Wilson Says Too Early to Give Stocks All-Clear

Equity markets still face unresolved risks around trade tensions and slowing earnings revisions, which should keep investors cautious in the near-term, according to Morgan Stanley’s Michael Wilson.

The S&P 500 has yet to recoup losses induced by an escalation in US-China tensions earlier this month. At the same time, earnings revisions — the number of analysts upgrading versus downgrading estimates — are slowing just as the reporting season gets into full swing. Adding to the jitters are cracks appearing in credit after loan blowups at two regional lenders.