|Bid||57.38 x 800|
|Ask||57.55 x 4000|
|Day's Range||56.18 - 57.57|
|52 Week Range||38.76 - 57.57|
|Beta (5Y Monthly)||1.38|
|PE Ratio (TTM)||11.08|
|Earnings Date||Apr 14, 2020 - Apr 19, 2020|
|Forward Dividend & Yield||1.40 (2.48%)|
|Ex-Dividend Date||Jan 28, 2020|
|1y Target Est||59.82|
A week ago, Morgan Stanley (NYSE:MS) came out with a strong set of yearly numbers that could potentially lead to a...
The signing of the phase-one trade deal between the U.S. and China was probably a boon to banks, assuming that easing tensions spur business loan growth.
(Bloomberg) -- The U.S. Treasury’s plan to reboot its 20-year bond clarified how the government will fund a $1 trillion deficit, but also raised questions about the decision’s ramifications elsewhere in the market.Traders took a stab at providing some answers in the immediate aftermath, reshaping the yield curve. The extra yield on 30-year bonds versus 2-year notes rose almost 3 basis points on Friday, the biggest increase since late December.While some see this move auguring a steeper curve longer term, much will depend on how the Treasury Department rejiggers its lineup of issuance. And that in turn will depend on when the sales begin, and their size, analysts say.Wall Street dealers seem generally of the view that the new issue will lead to only marginal cuts, if any, to other coupon-bearing auctions. At UBS, strategist Chirag Mirani says the market pricing has already adjusted to the prospect of new supply, and he sees the recent cheapening in longer-dated Treasuries as a buying opportunity.But Jim Caron at Morgan Stanley Investment Management sees cuts closer to the front end of the curve, which should help widen the gap between short- and longer-end yields.“We like the curve steepener, so this is a welcome thing,” Caron said Friday.Most dealers anticipate the new 20-year bonds to debut in May. Waiting until around mid-year reduces the need to shave auction sizes that are historically large, which has left the Treasury well-funded for now.But the federal budget deficit is set to surpass $1 trillion, and the U.S. also has to deal with a wall of debt starting to mature later this year. As a result, any move to shrink offerings of other coupon-bearing maturities to make room for the 20-year would soon have to be reversed. And if the Treasury does take that step, bills are seen as the most likely candidate.“The key reason for Treasury to introduce the 20-year now is that it gives it a warm-up period,” said Jim Vogel, a strategist at FHN Financial. “It will be absolutely necessary later on for larger auction sizes overall,” so cuts now would only be temporary.For decades, the Treasury has sought a regular and predictable approach to issuance, which it sees as fostering investor demand and reducing the cost to taxpayers. That approach has meant that officials prefer not to make abrupt or frequent changes to their auction slate.One reason to expect a supply-driven steepening in the curve is looking shakier: The decision to reboot the 20-year, which the U.S. stopped issuing in 1986, appears to put on ice for now the prospect of even longer maturities. Treasury Secretary Steven Mnuchin has been pondering that step since he took over in 2017. The 20-year idea seemed to gain traction last quarter.There’s another key reason analysts say the Treasury can wait a few months to introduce the two-decade maturity. Its financing position is getting a boost from the Federal Reserve’s monthly purchases of $60 billion in T-bills, a program aimed at increasing reserves. As those securities mature and the central bank rolls them over, it reduces the amount the government needs to borrow from the public.“Based on the current auction sizes and projections for the deficit, it seems unlikely to us that Treasury will start issuing the 20-years in February, but they will likely announce in May the actual start of sales,” said Zachary Griffiths, a rates strategist Wells Fargo Securities. “And at that time, Treasury could start 20-years a bit smaller than its full annual run-rate plans, or if not, just cut the 30-year auctions by a few billion.”It will likely leave the 10-year alone, because its role as the world’s borrowing benchmark means it needs to be highly liquid, according to Griffiths.Well Fargo forecasts that when the 20-year is fully up and running, Treasury will sell about $39 billion quarterly, or about $150 billion to $160 billion each year. The Treasury Borrowing Advisory Committee has recommended that the government issue $140 billion annually.More information on the 20-year will come at Treasury’s next quarterly announcement of longer-dated debt sales, on Feb. 5, the department said in a statement. In its regular quarterly survey released Friday, Treasury asked dealers about the maturity, including their view on the minimum auction size and total issue size necessary to ensure benchmark liquidity.“Treasury will likely do this in a way to limit adjustments needed in other coupon maturity sizes, or even prevent any from occurring at all,” said Mark Cabana, head of U.S. interest rates strategy at Bank of America Corp.(Updates with views on the U.S. Treasury yield curve)\--With assistance from Saleha Mohsin and Elizabeth Stanton.To contact the reporters on this story: Liz Capo McCormick in New York at email@example.com;Emily Barrett in New York at firstname.lastname@example.orgTo contact the editors responsible for this story: Benjamin Purvis at email@example.com, Nick Baker, Mark TannenbaumFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Morgan Stanley said on Friday that its board lowered Chief Executive Officer James Gorman's total compensation for 2019 to $27 million, from $29 million in 2018, according to regulatory filings. Gorman's compensation is comprised of four parts: a base salary of $1.5 million; a cash bonus of $6.375 million; a deferred equity award of $6.375 million; and a performance-vested equity award of $12.75 million. The board again required that 75% of Gorman's incentive compensation be deferred over three years subject to a claw-back, and for all of that compensation to be paid in the form of equity in the company.
The bank’s Shareworks business is at the heart of its efforts to expand its wealth management clientele over the next five to seven years.
(Bloomberg) -- Major technology and internet companies have long fueled the U.S. stock market’s climb to record levels, but that trend has come with one notable exception: Amazon.com Inc., which has languished in a fairly narrow trading range for months.Amazon shares haven’t notched an all-time high since September 2018, in contrast to mega-cap peers like Apple, Microsoft, Alphabet and Facebook, which have been hitting records on a near-daily basis. Many of these names experienced pronounced draw-downs over the past year and a half, mostly due to disappointing earnings reports or outlooks. But they regained their momentum last year, as their growth assuaged investor caution. Amazon, however, remains about 8.5% below its own peak.Because of its long-term prospects, Amazon is about as close as a stock can be to a consensus choice among Wall Street firms. Over the near term, though, it is “the most hotly debated among investors” as “debates persist on both AWS and next day shipping efforts,” according to UBS analyst Eric Sheridan, referring to its Amazon Web Services cloud-computing business.Since the start of 2019, Amazon shares are up about 24%, below the 32% rise of the S&P 500, as well as the much larger gains seen in other bellwethers. Microsoft and Facebook are both up more than 60% since the start of last year, while Apple has doubled. The rally resulted in trillion-dollar valuations for Apple, Microsoft and Google-parent Alphabet, a milestone that Amazon briefly eclipsed in 2018.The underperformance reflects concerns over Amazon’s earnings trends, even as it has continued to grow revenue at a double-digit clip. Major investments into initiatives like one-day shipping are seen as headwinds, and shares “may be range bound ‘tactically’” given the impact of this spending, Morgan Stanley wrote on Thursday. The firm added that “near-term profitability is likely to still disappoint” because of these investments, even as it sees the effect as temporary and one-day shipping deepening Amazon’s competitive moat within e-commerce.Another key issue is the waning dominance of Amazon Web Services, which has long been a major driver for earnings and margins, but has faced growing competition from rivals like Alphabet and especially Microsoft. According to Bloomberg Intelligence, which cited IDC data, Amazon Web Services was 12 times larger than Microsoft’s cloud business in 2014. By 2018, the most recent year for which data is available, it was just four times larger.James Bach, an analyst at Bloomberg Intelligence, wrote that Amazon was particularly facing “stiffer competition” with government contracts. “Microsoft’s extensive sales experience, installed base within U.S. agencies and broad range of edge-computing products all make a compelling offering,” he wrote. Microsoft is “uniquely positioned to claim market share as federal agencies upgrade and secure IT systems.”In October, Microsoft beat out Amazon for a $10 billion Pentagon cloud contract, a deal Amazon had been seen as the favorite to win. The company subsequently claimed it lost the contract because of political interference by President Donald Trump, and filed a lawsuit challenging its validity.Amazon earlier this week named a new sales chief for AWS. Deutsche Bank wrote that the “magnitude of personnel changes” at AWS, along with rising competition, underscored the “increased risk of further deceleration” at the business.Separately, Morgan Stanley this week wrote that a quarterly survey of chief investment officers suggested some cause for caution about AWS growth. “Quarterly survey results can be volatile, but AWS saw a notable [quarter-over-quarter] drop in net expected budget share gains” over the next three years, analyst Brian Nowak wrote. “It will be important to continue to monitor these metrics going forward as we think about AWS forward growth.”Amazon is expected to report fourth-quarter results later this month. According to data compiled by Bloomberg, Wall Street is looking for revenue growth of nearly 19% and expecting net income to fall by nearly a third. AWS revenue is seen growing more than 30% on a year-over-year basis, according to a Bloomberg MODL estimate.Wall Street remains almost unanimously positive on the stock. According to data compiled by Bloomberg, 53 firms recommend buying the stock, compared with the four with a hold rating. None advocate selling the shares.To contact the reporter on this story: Ryan Vlastelica in New York at firstname.lastname@example.orgTo contact the editors responsible for this story: Catherine Larkin at email@example.com, Steven Fromm, Janet FreundFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
The Dow Jones Industrial Average rose 32 points, or 0.1%. The S&P 500 was up 0.2%, and the Nasdaq Composite rose less than 0.1%.
Dividends are one of the best benefits to being a shareholder, but finding a great dividend stock is no easy task. Does Morgan Stanley (MS) have what it takes? Let's find out.
(Bloomberg) -- A breed of systematic trader acutely sensitive to volatility is charging into U.S. stocks at the kind of pace last seen before “volmageddon” rocked Wall Street almost two years ago.Volatility-targeting funds are doubling down on equities after geopolitical turmoil that threatened to derail the bull market in the end barely slowed it down. These players buy and sell based on price swings, and their leverage -- a measure of exposure to stocks -- now sits at its 81st percentile since 2011, according to Morgan Stanley.That might be a cause for hand-wringing in some quarters of the market, as it echoes the run-up to February 2018, before a swift de-risking by systematic players is thought to have intensified a market plunge. Algorithmic traders are often seen as weak hands because many strategies are at the mercy of signals that can flip on a dime.“Considering that systematic strategies are very levered, traditional investors’ gross and net exposures are very high, and retail traders are also more levered-up -- that leaves us susceptible to a real draw-down,” said Alberto Tocchio, chief investment officer at Colombo Wealth SA, a Swiss wealth manager that oversees 2.5 billion Swiss francs ($2.6 billion).Fortunately, conditions look very different from 2018, Nomura’s Masanari Takada wrote in a note today. Pointing to a lack of fear in the VIX options market, the quant strategist says any short-term dips would likely be treated by investors as buying opportunities.Meanwhile, the trigger fingers of vol-targeting funds, which by one estimate hold around $400 billion, may be firmer than thought after an extended stretch of tranquility, according to Deutsche Bank AG strategists led by Binky Chadha. These strategies typically load up on stocks when markets are calm and sell when volatility hits.“They would need to see a large and sustained spike in vol for their selling thresholds to be hit,” the team wrote.Animal SpiritsStill, there’s little doubt that equity positioning by systematic strategies is stretched. The leverage of short-term trend-followers known as CTAs is at the 78th percentile since 2011, according to Morgan Stanley.And animal spirits are in the air, with Bank of America Corp. strategists led by Michael Hartnett writing this week they’re staying “irrationally bullish until peak positioning and peak liquidity incite a spike in bond yields and a 4-8% equity correction.”The possibility that CTAs sell en masse on a change in market dynamics “cannot be ignored,” Nomura’s Takada wrote in an email.“If any unpredictable but tiny shock causes a correction in the upward momentum of a U.S. stock price index like the S&P 500, systematic trend-followers are likely to rush into exiting from their current bullish trades simultaneously,” he said.\--With assistance from Justina Lee.To contact the reporter on this story: Ksenia Galouchko in London at firstname.lastname@example.orgTo contact the editors responsible for this story: Blaise Robinson at email@example.com, Yakob Peterseil, Sam PotterFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
James Gorman, chief executive of Morgan Stanley, will receive $27m in total compensation for 2019, a 7 per cent reduction from his 2018 award of $29m. The bank ended the year with a strong fourth-quarter result, buoyed by robust activity in the capital markets, and by raising its long-term goals for return on equity. Mr Gorman said the results “met all of our stated performance targets”.
The Commerce Department reported the data on Thursday morning. If you take out that category, December’s retail sales growth looks even better—up 0.7% from the prior month, which is more than expected. The bank reported better-than-expected fourth-quarter earnings in the morning, and it saw growth across the board: The bank’s revenues climbed in each of its trading, investment banking, and wealth management businesses.
(Bloomberg) -- Follow Bloomberg on Telegram for all the investment news and analysis you need.Bankers in Hong Kong have had a busy week as initial public offerings are taking place at the fastest pace in the city in almost two years.Seventeen companies began trading this week, making it the busiest week for Hong Kong since July 2018, according to data compiled by Bloomberg. At the same time, companies already listed on the bourse were also seeking fresh funds and large shareholders were selling their stakes, causing a spike in the number of blocks and placements happening in the market.The up-tick in deals is fueled by the rise in the Hang Seng Index, which is on its seventh consecutive weekly gain, its longest winning streak in two years. The flurry of activity is also driven by companies and banks wanting to get deals done before the market winds down for the earlier-than-usual Chinese Lunar New Year holidays.However, a busy week may not be all good news. The 17 firms that debuted this week are trading with mixed results. Thirteen firms are currently trading underwater, data compiled by Bloomberg show. Chinese eatery chain Jiumaojiu International Holdings Ltd. and Wan Ho Holdings Group Ltd., which provides building maintenance services in Hong Kong, are two of the best performers. The worst debut is by Chinese floor tiles supplier JiaChen Holding Group Ltd., which slumped 33% below its offer price.The disappointing performance of recent IPOs may not bode well for companies seeking listings on the bourse this year. In addition, over the past two years, a peak in the market index coupled with a jump in placements has been followed by a slide in global equities. A busy week may not be such a boon after all.UPCOMING LISTINGS:Central Retail CorpThailand stock exchangeSize up to $2.6bBooks close Feb. 3, listing Feb. 20Bualang Securities, Phatra Securities, Credit Suisse, Morgan Stanley, UBSShenzhen Leoking Environmental GroupHong Kong exchangePre-marketing started Dec. 18CLSA sole sponsorMr D.I.Y GroupBursa MalaysiaSize up to $500mPricing date TBDCIMB, MaybankUCloud Technology Co LtdShanghai exchangeSize $290mListing Jan 20.CICCZhongguancun Science-Tech Leasing Co LtdHong Kong exchangeSize up to $73mListing Jan 21.Bocom InternationalMore ECM situations we are following:Tokopedia plans to do an IPO within the next three years, with a dual listing in U.S and Indonesia, Nikkei reports, citing an interview with the company’s president.Ant financial is said to be working with banks to revive plans for an IPO, FT reported, citing people familiar with the matter.Chinese data center operator ChinData Group is said to have selected banks working on its planned initial public offering, according to people familiar with the matter.SEE ALSO:Asia ECM Weekly AgendaIPO dataU.S. ECM WatchEU ECM WatchTo receive the ECM Watch in your inbox daily, click the “subscribe” button at the top of this articleTo contact the reporter on this story: Zhen Hao Toh in Singapore at firstname.lastname@example.orgTo contact the editors responsible for this story: Lianting Tu at email@example.com, Margo TowieFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Japan's benchmark share index on Friday marked its highest close in a month, after touching a 15-month peak earlier in the session, as hopes for a rebound in global demand and a softer yen drove broad-based gains. The Nikkei 225 Index closed 0.45% firmer at 24,041.26.
The drinks are still flowing at Le Bernardin and The Grill in Manhattan, but the bankers spending lavishly there may soon notice that their wallets are not being refilled as rapidly as their glasses. Bonus pools are expected to be lower at some of Wall Street’s top banks after merger and acquisition advisory fees dropped $558m last year, several top dealmakers tell DD.
Japan's benchmark share index rose to its highest in 15 months on Friday, as hopes for rebounding global demand and a softer yen drove broad-based gains. The Nikkei 225 Index rose half a percentage point to touch its highest level since October 2018 and has added more than 1% this year.
We found three cloud computing stocks with the help of our Zacks Stock Screener that investors might want to consider buying for 2020...
U.S. stocks, buoyed by upbeat news, powered ahead again on Thursday, after the Dow Jones Industrial Average closed above 29,000 for the first time on Wednesday.
(Bloomberg) -- Virgin Galactic Holdings Inc. has surged 29% since Jan. 1 as the company prepares to fly its first space tourists in 2020.Investors are also betting that Virgin Galactic, founded by entrepreneur Richard Branson, will be one of the first companies to offer point-to-point hypersonic travel, one day potentially reducing intercontinental flights to less than three hours. In a December report, Morgan Stanley analysts valued that market at $800 billion by 2040, dwarfing the space tourism business.Virgin announced last week that its second commercial ship had reached a “weight on wheels” assembly milestone considerably faster than it took to get to the same stage with its first spaceship. Work on a third ship has begun, the company said.Virgin Galactic aims to have five spacecraft in service by the end of 2023 operating from its base at Spaceport America in southern New Mexico. That’s where customers will gather later this year to board the company’s first commercial flight.On Wednesday, the company named Enrico Palermo as its chief operating officer. Palermo was president of its manufacturing unit, Spaceship Co.Virgin Galactic rose 0.7% to $14.94 Thursday in trading in New York.The company debuted on the public markets on Oct. 28 and rose to more than $12 before dipping to a low of $7.22 in late November. The stock began rising again in mid-December, finishing the year at $11.55. Morgan Stanley assigned a $22 target price for the shares on Dec. 19.The surge last month came after the management team made the rounds of analysts to tell its story, Alex King, founder of Cestrian Capital Research, wrote in a Jan. 13 note. King owns Virgin Galactic shares personally.Customer DemandThe company has been doing a good job highlighting its future opportunities, said Steven Jorgenson, general partner at Starbridge Venture Capital.“Talking about strong customer demand and of opening up ticket reservations again has been a good strategy while they’re still in a bit of an operational grace period ahead of regular customer launches later this year,” he wrote in an email.The company has a backlog of 600 people who have placed deposits for a trip on a spaceship, and collected information from another 3,500 potential customers who have expressed interest in the flights, Palermo said in an interview.“We continue to see that number tick up every month,” he said. “We’re very comfortable with demand for that market.”Virgin Galactic hasn’t decided whether it will resume taking reservations before or after the commercial flights commence, Palermo said.In November, Virgin reported losing about $128 million for the period through Sept. 30. King labeled the stock “speculative” given the company’s early stage. Virgin Galactic has raised more than $1 billion since it was founded in 2004, initially from Branson, with an Abu Dhabi investment company taking a stake in 2010.(Uupdates with comment from COO beginning in 11th paragraph.)To contact the reporter on this story: Justin Bachman in Dallas at firstname.lastname@example.orgTo contact the editors responsible for this story: Brendan Case at email@example.com, Susan Warren, Tony RobinsonFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
The dollar rose while key world and stock indexes on Wall Street scaled new records on Thursday as the U.S.-China trade deal, strong corporate earnings and encouraging U.S. economic data lifted equity markets. Oil rose as the long-awaited Phase 1 trade deal brought some relief to markets, while gold prices slid briefly below the psychological level of $1,500 an ounce as the upbeat data signaled a healthy U.S. economy. Other data showed a gauge of manufacturing activity in the U.S. Mid-Atlantic region rebounded in January to its highest in eight months, leading the Federal Reserve Bank of Philadelphia to call the factory outlook the brightest in more than 18 months.