With the S&P 500 looking ‘stuck’, investors should seek out stocks that have already priced in bad news, says Morgan Stanley. - MarketWatch

1. S&P 500 is stagnant, targeting a range between 5,000 and 5,500. 2. Market needs tariff deal with China and Fed rate easing to break resistance. 3. Investors should focus on high-quality cyclicals considering economic slowdown risks. 4. Upcoming labor market data may impact market sentiment significantly. 5. Morgan Stanley suggests U.S. equities may outperform due to a weaker dollar.