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Why Morgan Stanley isn’t Goldman Sachs

Talking Numbers

Morgan Stanley reports better-than-expected earnings Friday. So far this year, it's given investors double the returns of Goldman Sachs. Here's why the two investment houses are different.

Shares of Morgan Stanley are up Friday after the company beat Wall Street's earnings estimates. Contrast that to archrival Goldman Sach's earnings disappointment on Thursday.

For the year, Morgan Stanley is up 55% compared to Goldman Sachs' 24%. So, what's Morgan Stanley doing right that Goldman Sachs isn't?

Well, here's one thing that may help answer that question: the two socks were trading fairly close together until May. That's just about the time Federal Reserve Chief Ben Bernanke hinted that Fed would taper its $85 billion per month bond-buying program by the fall.

Of course, the Fed never did taper but a massive selloff in bonds began in May. The division at Goldman responsible for bond trading had a 44% decrease in revenues during the most recent quarter.

Meanwhile, what's next for Morgan Stanley?

On CNBC's Street Signs' Talking Numbers segment, Andrew Busch, publisher of The Busch Report, looks at Morgan Stanley's technicals. On the fundamentals is Marc Lichtenfeld, Chief Income Strategist at The Oxford Club.

Watch the video above to see what the fundamentals and technicals have to say about Morgan Stanley.

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