The stock market opened right below its latest highs on Monday as Wall Street continues to gush over the impending economic recovery, but Morgan Stanley cautioned in a morning note to clients that there are signs the actual reopening will be"more difficult than we're dreaming about."Shortly after the market open, the Dow Jones Industrial Average and S&P 500, which both closed at record highs Friday, ticked down about 0.1% each, while the tech-heavy Nasdaq slipped 0.2%.
Reflecting ongoing uncertainty over the impending economic reopening, shares of the world's largest cruise operators—the cyclical stocks among last week'smarket gainers—are heading up losses Monday, with Norwegian Cruise Line, Carnival and Royal Caribbean down 1.7%, 1.4% and 1.2%, respectively. Despite the market's new highs, Morgan Stanley equity strategist Michael Wilson said that"underneath the surface," the diverging performance between small-cap and cyclical stocks, which tend to outperform during periods of economic growth, could be a"warning sign that the actual economic reopening will be more difficult than we're dreaming about."