Morgan Stanley says consumer discretionary stocks could drive the bull market higher despite recent stock hiccups.

Morgan Stanley strategists highlight that the bull market remains strong, with consumer discretionary stocks like Ulta Beauty, transports, and regional banks showing significant gains of 9%, 13%, and 8% respectively over the past month. These sectors have been underowned but are now poised to support continued market growth, while the broader S&P 500 has only risen 0.3% in June so far. This suggests investors may find opportunities in these cyclical groups despite recent market volatility.