1. “Momentum selloff in AI stocks is likely over”, says Morgan Stanley.

Under the surface, one of the market's biggest storylines was the sharp reversal in momentum stocks. Momentum had been the standout factor for much of the year, but it took a significant hit in July.
Morgan Stanley’s Michael Wilson said that the momentum selloff in AI stocks is likely over, and he expects US stock market leadership to rotate toward companies with stable earnings and strong margins. Deutsche Bank’s Parag Thatte, meanwhile, reckons the rotation back into tech stocks that started last week has further to run.
“A lot of froth in the equity market has been aggressively removed and valuations have been reset, while prime brokerage data shows that leverage has largely been cleaned up and these positions closed.”

2. U.S. manufacturing activity increased to the highest level in more than four years.

Manufacturing surveys continue to signal solid growth in the sector into the second half of the year, despite supply chain challenges and inflationary pressures.
The July ISM composite rose to its highest level since May 2022 at 55.6, up from 53.3 in the prior month, along with a solid print of 53.9 in the final PMI report.

3. How Musk companies have performed since the SpaceX IPO.

Since then, its market value has slumped by an eye-watering $1 trillion.
Later today, SpaceX will publish results, just two days before the first post-IPO share unlock begins Thursday.

4. “Publicis is winning the AI Ad race”, says Barron’s.

“The French company is pairing AI-powered marketing with strong client retention, growing free cash flow, and a major data acquisition. Though it outperforms its peers, its shares still trade at a discount.”
Barron’s sees 56% upside.

5. Buying opportunity in Legrand.

RBC Capital Markets raises French electrical group Legrand to "Buy”, saying the recent de-rating has created an attractive buying opportunity
It says the stock has underperformed the sector by 15 percentage points since late June despite positive earnings momentum and strong Q2 results

“The pullback offers a chance to increase exposure to a high-margin and highly cash-generative business that "also has a compelling top-line story".
RBC raises its PT by nearly 7% to €160, modelling a conservative organic sales compound annual growth rate of 6% between 2026 and 2030.
Among the 21 analysts covering Legrand, 13 rate the stock "strong buy" or "buy", six "hold" and two "strong sell" or "sell" - LSEG data

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