Morgan Stanley is out with a new call recommending investors lock in their gains on defensive stocks (XLV, XLU) as they tend to underperform in the month following the Federal Reserve's first interest rate cut.

Catalysts Hosts Seana Smith and Madison Mills report more on the call and break down how the upcoming labor market data could impact investors' defensive plays.

For more expert insight and the latest market action, click here to watch this full episode of Catalysts.

This post was written by Melanie Riehl