Morgan Stanley Strategist Sees Choppy Markets Ahead as Yields Top 5% and Earnings Get Punished

Morgan Stanley's Wilson says earnings reports are being punished, with average stock drops after earnings.

Wilson doesn't expect a sustained rally, sees S&P 500 bottoming and struggling to get much above 4,300-4,400.

Markets saw the 10-year Treasury yield finally exceed 5% before pulling back. Stock futures fell Monday.

Progress was made in Middle East over the weekend but remained tentative. Chevron acquiring Hess in $53B deal.

Chart shows inflation expectations highly linked to oil prices, implying commodity bull market has years to run.