Bloomberg Talks Mike Wilson Talks Earnings and Government Shutdown
Nov 13, 2025
Mike Wilson, Chief U.S. Equity Strategist at Morgan Stanley, shares insights on robust earnings trends that are set to fuel a U.S. stock rally in 2026. He discusses how companies are gaining pricing power and the decrease in earnings downgrades. Wilson also analyzes the minimal market impact of the government shutdown while emphasizing the Fed's challenges with missing data. He forecasts a brighter earnings outlook, suggesting low double-digit revisions are on the horizon and predicts that the Dow could reach record highs despite broader market lags.
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Shutdown Easing Is Temporary Relief
- The government shutdown's end brings relief but won't erase underlying political risk.
- Mike Wilson warns the issue could re-emerge as soon as January, keeping markets wary.
Data Gaps Complicate Fed Decisions
- Data releases may be delayed or missing, which hampers Fed decision-making.
- Wilson says post-COVID data collection is erratic, making the Fed's job harder.
Wall Street Expects Faster Rate Cuts
- Morgan Stanley expects five to six rate cuts next year, more than market pricing.
- Wilson highlights tension between market expectations and the Fed's slower pace.