Latest news with #LisaShalett
AU Financial Review
18 hours ago
- Business
- AU Financial Review
Before the Bell: ASX to rise, S&P 500 presses higher
Australian shares are set to open higher, with US equities advancing on hopes for a positive outcome from US-China trade talks in London and the S&P 500 moving closer to resetting its record high. The Trump administration is signalling that it's ready to ease some restrictions on sales of semiconductors to China in exchange for China easing limits on rare earth shipments. 'Fear, capitulation and offsides positioning have driven the 20 per cent-plus rebound in the S&P 500 and Nasdaq Composite,' Morgan Stanley Wealth Management's Lisa Shalett said in a note. 'While 'peak pessimism' may be past, we believe we are far from back to where we were in January.' Shalett also said regardless of what actually happens with tariffs, the market seems to view them as 'old and manageable news'. Still: 'While markets are anticipatory, the current rally still seems to be struggling with a credible narrative.' Market highlights ASX futures are pointing up 23 points or 0.3 per cent to 8582. All US prices are as of 2.20pm New York time. Today's agenda NAB will release its monthly business confidence report on Tuesday morning as well as Westpac releasing its June consumer confidence report. Top stories ASIC shakes up float rules to jumpstart struggling IPO market | The trial measures will accelerate listings and represent the biggest changes to the process for almost a decade. Big majority doesn't mean big plans, Albanese cautions | Anthony Albanese is hosing down expectations he is about to embark on a bold new agenda, saying Labor must deliver what it promised in the election. | Western Australia reserves a portion of its export gas for domestic use – and has some of the lowest prices in the world. US distressed debt giant lobs bid for collapsed airline Rex | Bids for the carrier, better known as Rex, were collected last week with local and international buyers canvassed by investment bank Houlihan Lokey.
Yahoo
19-05-2025
- Business
- Yahoo
Why the rally in stocks is destined to fizzle out, according to Morgan Stanley's wealth CIO
The stock market rally will "stall out," Morgan Stanley's Lisa Shalett said. The Magnificent 7 stocks will lose momentum amid decelerating growth and dropping cash levels. Shalett suggested a turn toward beneficiaries of deregulation. Stocks have rallied sharply since April lows but investors shouldn't treat the upside as a blueprint for what's to come, a top Wall Street exec warned last week. Lisa Shalett, the chief investment officer at Morgan Stanley Wealth Management, said she expects slower momentum going forward among key tech stocks. That will jeopardize a sustained rally, she said. "I think we're going to stall out here. I think it's just hard to justify the numbers," she told Bloomberg TV on Friday, emphasizing that the top S&P 500 leaders are trading back at highs from earlier in the year despite a 6% earnings-per-share drawdown. Even for those who still believe the Magnificent Seven stocks' outperformance will last, Shalett listed three reasons to reconsider their bullishness. There's the fact that top-line growth has decelerated, as has free-cash-flow, she said. Typically, Mag Seven stocks don't perform well when the latter declines — the "arms race" to spend on AI has already shrunk free-cash-flow 11%, Shalett outlined. What's more, investors shouldn't forget the wall of uncertainty that still surrounds artificial intelligence, especially in terms of AI competition. Despite current market euphoria, this year's DeepSeek surprise shouldn't be discounted, showcasing that international AI competition is rising. "We fundamentally think it was the wake-up call around global engineering, global innovation, and the fact that none of us know how the movie ends here on Gen AI," Shalett said. Convinced that the AI rally is losing steam, Shalett suggested that investors take profits in tech now and gain exposure to the next beneficiaries: stocks set to rise on industry deregulation. That includes financials, energy, and certain healthcare names. Shalett's forecast isn't necessarily shared by everyone on Wall Street, with opinions split on what comes next after the recent tariff euphoria. Trade deals have revived investor bullishness, sending the S&P 500 up 19% from April's lowest point. Read the original article on Business Insider
Business Insider
19-05-2025
- Business
- Business Insider
Why the rally in stocks is destined to fizzle out, according to Morgan Stanley's wealth CIO
The stock market rally will "stall out," Morgan Stanley's Lisa Shalett said. The Magnificent 7 stocks will lose momentum amid decelerating growth and dropping cash levels. Shalett suggested a turn toward beneficiaries of deregulation. Stocks have rallied sharply since April lows but investors shouldn't treat the upside as a blueprint for what's to come, a top Wall Street exec warned last week. Lisa Shalett, the chief investment officer at Morgan Stanley Wealth Management, said she expects slower momentum going forward among key tech stocks. That will jeopardize a sustained rally, she said. "I think we're going to stall out here. I think it's just hard to justify the numbers," she told Bloomberg TV on Friday, emphasizing that the top S&P 500 leaders are trading back at highs from earlier in the year despite a 6% earnings-per-share drawdown. Even for those who still believe the Magnificent Seven stocks' outperformance will last, Shalett listed three reasons to reconsider their bullishness. There's the fact that top-line growth has decelerated, as has free-cash-flow, she said. Typically, Mag Seven stocks don't perform well when the latter declines — the "arms race" to spend on AI has already shrunk free-cash-flow 11%, Shalett outlined. What's more, investors shouldn't forget the wall of uncertainty that still surrounds artificial intelligence, especially in terms of AI competition. Despite current market euphoria, this year's DeepSeek surprise shouldn't be discounted, showcasing that international AI competition is rising. "We fundamentally think it was the wake-up call around global engineering, global innovation, and the fact that none of us know how the movie ends here on Gen AI," Shalett said. Convinced that the AI rally is losing steam, Shalett suggested that investors take profits in tech now and gain exposure to the next beneficiaries: stocks set to rise on industry deregulation. That includes financials, energy, and certain healthcare names. Shalett's forecast isn't necessarily shared by everyone on Wall Street, with opinions split on what comes next after the recent tariff euphoria. Trade deals have revived investor bullishness, sending the S&P 500 up 19% from April's lowest point.
Business Insider
19-05-2025
- Business
- Business Insider
Why the rally in stocks is destined to fizzle out, according to Morgan Stanley's wealth CIO
Stocks have rallied sharply since April lows but investors shouldn't treat the upside as a blueprint for what's to come, a top Wall Street exec warned last week. Lisa Shalett, the chief investment officer at Morgan Stanley Wealth Management, said she expects slower momentum going forward among key tech stocks. That will jeopardize a sustained rally, she said. "I think we're going to stall out here. I think it's just hard to justify the numbers," she told Bloomberg TV on Friday, emphasizing that the top S&P 500 leaders are trading back at highs from earlier in the year despite a 6% earnings-per-share drawdown. Even for those who still believe the Magnificent Seven stocks' outperformance will last, Shalett listed three reasons to reconsider their bullishness. There's the fact that top-line growth has decelerated, as has free-cash-flow, she said. Typically, Mag Seven stocks don't perform well when the latter declines — the "arms race" to spend on AI has already shrunk free-cash-flow 11%, Shalett outlined. What's more, investors shouldn't forget the wall of uncertainty that still surrounds artificial intelligence, especially in terms of AI competition. Despite current market euphoria, this year's DeepSeek surprise shouldn't be discounted, showcasing that international AI competition is rising. "We fundamentally think it was the wake-up call around global engineering, global innovation, and the fact that none of us know how the movie ends here on Gen AI," Shalett said. Convinced that the AI rally is losing steam, Shalett suggested that investors take profits in tech now and gain exposure to the next beneficiaries: stocks set to rise on industry deregulation. That includes financials, energy, and certain healthcare names. Shalett's forecast isn't necessarily shared by everyone on Wall Street, with opinions split on what comes next after the recent tariff euphoria. Trade deals have revived investor bullishness, sending the S&P 500 up 19% from April's lowest point.
Bloomberg
16-05-2025
- Business
- Bloomberg
Morgan Stanley's Shalett Sees S&P Rally Sputtering Amid AI Risks
The furious comeback in US equities from the depths of last month's rout is poised to come to a halt, according to Morgan Stanley's Lisa Shalett. The chief investment officer of the bank's wealth management division says decelerating revenue growth from the Magnificent Seven megacap companies and waning earnings momentum more broadly will limit further market upside after a double-digit recovery in the S&P 500 Index from April's lows.
