Morgan Stanley’s Wilson Sees S&P Profit Boom Despite Iran War

Even as war in the Middle East roiled markets this month, some investors are finding solace in Corporate America’s growth machine, which not only remains intact — but is showing signs of thriving.

Sell-side strategists have been boosting their profit outlooks, defying concern over soaring oil prices and a potential hit to consumer demand. Earnings in the S&P 500 Index are expected to rise 20% in the next 12 months, data compiled by Morgan Stanley show. Historically, the reading was higher only when the economy emerged out of recessions.