Softer U.S. economic data may point to weaker earnings over the next several months as corporates’ pricing power will erode as inflation cools, while labor costs continue to be a headwind for private sector profits, according to Morgan Stanley’s Michael Wilson.
“Many of the leading macro data points that we focus on have fallen in recent weeks and are not pointing to a similar run rate in terms of strength looking forward over the next several months,” a team of strategists led by Wilson, Morgan Stanley’s chief equity strategist…