Why investors should buy industrial stocks now as a valuable market driver deteriorates, Morgan Stanley says

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• Earnings-revision breadth, cited as a bullish market driver, has deteriorated, Morgan Stanley says.
• But industrial stocks are still uniquely positioned to outperform, the firm says.
• Companies that have beaten on earnings have seen outsized stock-price moves this earnings season.

A key driver of stock-market bullishness is deteriorating, although there are still opportunities available, Morgan Stanley wrote in new research.