U.S. stock indexes are drifting higher following a mostly encouraging batch of profit reports from big companies.

Analysts at Morgan Stanley say Microsoft (NASDAQ: MSFT) is in a "pole position" to capitalize on growing demand for generative artificial intelligence (AI)-powered applications like AI agents. Other analysts seem to agree.

BMO Capital Markets forecasts the S&P 500 will reach 6,700, reflecting a gain of 13.2%. Chief investment strategist Brian Belski said he and his team "remain resolutely bullish," but expect "performance and fundamentals will more closely match the historical norms -- namely, in the high-single digit/low-double-digit percentage range in 2025."