Morgan Stanley strategist Wilson: Stock market laggards should catch up

Morgan Stanley's chief US stock strategist Mike Wilson, who accurately predicted that traders should prepare for a US stock market pullback in early July and foresaw last month's market correction, stated that if Friday's US non-farm payroll report further proves the economy's resilience, stocks that have lagged behind the US stock market rally may receive a boost. Stronger-than-expected job numbers may make investors "more confident that growth risks have receded." Wilson reiterated his preference for defensive stocks and warned against buying small-cap stocks or "other cheap cyclical stocks that have underperformed in the past few years, mainly because economic growth is slowing down."