Bloomberg Surveillance Bloomberg Surveillance TV: July 29th, 2025
13 snips
Jul 29, 2025 
Mike Wilson, Chief US Equity Strategist at Morgan Stanley, shares insights on the optimistic market recovery, driven by factors like a weaker dollar and earnings revisions. Stephen Stanley, Chief U.S. Economist at Santander, discusses the White House's economic rebalancing efforts and the importance of labor data amidst ongoing trade negotiations. Kevin Gordon from Charles Schwab highlights the interplay between corporate earnings and labor market trends, examining how tariffs affect hiring and investment strategies across regions.
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Earnings Revision Breadth Signals Recovery
- Earnings revision breadth has exploded higher since a deep cyclical low, indicating strong bullish momentum.
- This broad-based revision is as significant as the COVID recovery, signaling a rolling recovery is underway.
Rolling Recovery Starts with Tech
- Tech and MAG-7 stocks lead the recovery, but other sectors like industrials and financials are also improving.
- The recovery is rolling, not simultaneous, starting from higher quality stocks and broadening gradually.
Tax Cuts Boost Industrial Sector
- Industrials are the best performing sector so far, driven by improving earnings and tax cuts.
- Corporate tax cuts act as a significant tailwind, boosting cash earnings and encouraging capital allocation by companies.