Morgan Stanley explains why Apple could rise 50%

Morgan Stanley reports that in the U.S., demand for the Apple Watch has increased by some 60 percent since March.

Analyst Katy Huberty has raised her estimate for iPhone sales in the June quarter to 50 million from 46 million, and is also increasing fiscal 2015 and 2016 forecasts by 5 percent and 7 percent, respectively. The analyst explains that increased demand in the current quarter is being driven by China and other emerging markets.

It's shaping up to be a great quarter and year for Apple, with iPhone and watch demand both set to impress, Morgan Stanley predicts in an analyst note.

Goldman turns bearish on credit and oil. Goldman also cut its outlook for commodities, advising investors to steer clear or "underweight" oil on a 12-month view.

"We still expect a decline in the oil price before it recovers, as the price is high relative to current and forecast fundamentals," analysts led by Christian Mueller-Glissmann at the bank, said in a research note on Wednesday.

"The reaction of non-OPEC (the Organization of Petroleum Exporting Countries) producers remains limited so far and low-cost producers such as Saudi Arabia, Iraq and Russia are on track to grow production sharply," he added.

Goldman Sachs said that while calling the timing on the price decline is difficult, it expected the oil price to "retrace its lows" of around $45 per barrel for WTI crude oil by October, before recovering gradually to $55 on a 12-month time horizon. By the end of next year, the bank forecasts a price of $60 per barrel.

Equities are still the preferred asset class for the investment bank, particularly in Europe and Japan, following consistent record highs seen in U.S. stock indexes this year.