Morgan Stanley’s Mike Wilson sees best ‘risk/reward’ market in 2 years
Investors should be taking advantage of the market’s steep sell-off from February highs, Morgan Stanley’s Mike Wilson told CNBC on Thursday.
Stocks surged for a third straight day Thursday as investors shrugged off the release of record-breaking initial jobless claims while the Senate passed a massive economic stimulus bill amid the coronavirus outbreak.
The Dow Jones Industrial Average jumped nearly 1,000 points, or 4.6%. The S&P 500 gained 4.4% while the Nasdaq Composite advanced 3.6%. Those gains put the Dow and S&P 500 on track for a three-day winning streak. They also put the Dow up about 20% over the past three days.
Boeing, American Express and Nike drove the Dow’s gains, with each stock rising more than 8%. Utilities and energy were the best-performing sectors in the S&P 500 as both traded more than 5% higher.
The Labor Department said Thursday unemployment benefit claims soared to 3.28 million last week, a record. That number blew past the Great Recession peak of 695,000. However, the record-setting number was still better than some of the most dire estimates on Wall Street. Citi, for example, expected a spike to 4 million.
“We all know the pain being felt and the economic damage being caused by this damn virus but because we are so close to getting past the worst of the spread, we need to start getting creative about what the restart will look like,” wrote Peter Boockvar, chief investment officer at Bleakley Advisory Group.
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