CNBC: Morgan Stanley Says Economy is on Recession Watch as Bond Market Flashes Warning

Article by Thomas Franck in CNBC financial Website

The stock market and economic outlook in the United States is “deteriorating,” according to an analysis from one of Wall Street’s top investment banks.

Renewed trade tensions and a slump in economic data — ranging from falling durable goods and capital spending to a downshift in the services sector — has put U.S. profits and economic growth at risk, Morgan Stanley warned Tuesday.

“Recent data points suggest US earnings and economic risk is greater than most investors may think,”wrote Chief U.S. Equity Strategist Michael Wilson.

Many recent reports reflect April data, “which means it weakened before the re-escalation of trade tensions,” Wilson continued. “In addition, numerous leading companies may be starting to throw in the towel on the second half rebound--something we have been expecting but we believe many investors are not.”

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