Morgan Stanley's recent US Equity Strategy report paints a positive picture for the S&P 500, highlighting strong earnings revisions in sectors like Financials, Media & Entertainment, and Software. Despite this optimistic outlook, the S&P 500 has experienced a slight decline, possibly due to broader market volatility or profit-taking after recent gains. The report suggests that industries with robust EPS revisions and pricing power are well-positioned for growth, with a projected 14% EPS increase in 2025. However, the market's reaction today indicates that investors may be cautious, balancing the favorable long-term outlook with short-term uncertainties.
The ProShares UltraPro S&P 500 (UPRO) ETF has seen a significant drop, falling 4.78% to $93.16 as of 9:40 AM on Monday, January 27.