US Equity Strategy: Strategy Data Pack – July 2026

Research evidence excerpt

US Equity Strategy: Strategy Data Pack – July 2026

M O R G A N S T A N L E Y R E S E A R C H

July 2, 2026 08:57 PM GMT

US Equity Strategy Michael Wilson

July 2, 2026 Chief US Equity Strategist & CIO of Morgan Stanley

M.Wilson@morganstanley.com

+1 212 761-2532

Strategy Data Pack – July 2026

Andrew Pauker

Key Points: Equity Strategist

Andrew.Pauker@morganstanley.com

• Breadth Is Improving as the Equal Weighted Index Outperforms +1 212 761-1328

• Earnings recovery story remains underappreciated

• As revenue growth returns atop lean cost structures, operating Michelle M. Weaver, CFA

leverage and EPS growth have reached their strongest levels US Thematic Strategist

since 2021—aka the rolling recovery. Michelle.M.Weaver@morganstanley.com

• The median S&P 1500 stock is now delivering double-digit +1 212 296- 5254

earnings growth, the fastest pace in several years.

• We continue to recommend exposure to this broadening theme Diane Ding, Ph.D.

through Discretionary Goods, Transports, and Regional Banks. Quantitative Strategist

• The broadening is likely to be further enhanced by falling crude Qian.Ding@morganstanley.com

prices. +1 212 761-6758

• Recent volatility in Semis is making historically high exposure

levels in the space harder to maintain, even in the more recent Nicholas J. Lentini, CFA

spot-up/vol-up backdrop. Equity Strategist

• A less hawkish than expected Fed on rates despite less generous Nick.Lentini@morganstanley.com

liquidity. +1 212 761-5863

• The June FOMC meeting reinforced that forward guidance will

diminish and the path of inflation will drive policy.

Morgan Stanley does and seeks to do business with • Our view is that falling energy prices, peaking tariff inflation, companies covered in its research reports. As a result,