Morgan Stanley’s Mike Wilson expects earnings will start to roll over on weaker consumer
Morgan Stanley’s Mike Wilson said investors should brace for tougher times ahead.
“The numbers are actually going to finally come down in a way that we didn’t think would happen in Q4, which it didn’t, but now, we think that’s happening,” Wilson said Tuesday on CNBC’s “Closing Bell: Overtime.”
The investment strategist said he expects earnings will start to roll over as companies deal with a weakening consumer.
Still, he’s open to changing his outlook if he does not see a “more meaningful” drawdown in the next three or four months, or by April.
“We will probably back off our call, … because we’re still in a world of somewhat of financial repression, and bonds are not a great alternative necessarily longer term, and stocks are kind of the only game in town in a higher inflationary environment,” he said. “We’re not willing to make that call today because we think the risk reward is out of whack.”
— Sarah Min
Microsoft shares rise after earnings results show resilience in cloud
Shares of Microsoft led the gains in after-hours trading, up more than 4% after its quarterly results came in above estimates on top and bottom lines. The stronger-than-expected report was driven by the strong growth in its cloud unit.
Revenue in Microsoft’s Intelligent Cloud segment amounted to $21.51 billion, up 18%. Meanwhile, sales from Azure and other cloud services, which Microsoft does not report in dollars, grew by 31%.
— Yun Li
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