45.38 -0.01 (-0.02%)
After hours: 5:50PM EDT
|Bid||45.14 x 3000|
|Ask||45.38 x 900|
|Day's Range||44.57 - 45.62|
|52 Week Range||36.74 - 48.67|
|Beta (3Y Monthly)||1.30|
|PE Ratio (TTM)||9.70|
|Earnings Date||Jan 15, 2020 - Jan 20, 2020|
|Forward Dividend & Yield||1.40 (3.11%)|
|1y Target Est||52.80|
Morgan Stanley posted stronger-than-expected earnings for the 3rd quarter, boosted by fixed income revenues. Profits also rose 2.3%. Yahoo FInance's Brian Cheung joins Akiko Fujita on The Ticker.
(Bloomberg Opinion) -- In markets, a theme can often become the overwhelming consensus. When that happens, traders feel two conflicting urges at the same time. The first is to say the majority is wrong and stake a contrarian position. The other is to wonder whether maybe everyone is onto something.This captures the current struggle for investors in the U.S. high-yield and leveraged loan markets. The consensus opinion is perhaps best stated by this Bloomberg News headline from last week: “Leveraged Loan Buyers Are Running for Cover as Fear Ramps Up.” Simply put, money managers are flocking into debt with higher credit ratings because they’re worried about how riskier securities will hold up if economic growth slows and their weak investor protections are put to the test. Already, big price moves are roiling certain pockets of the credit markets with greater frequency. That’s pushed the gap between prices on single-B and double-B rated leveraged loans, as well as the spread between triple-C and double-B junk bond yields, to the widest levels since mid-2016.As if to add fuel to the fire, S&P Global Ratings released a report late last week with the title “Weakest Links Reach a 10-Year High.” S&P defines weakest links as issuers rated B- or lower with negative outlooks or on its CreditWatch with negative implications. There were 263 of them globally in September, the most since November 2009. “The default rate of weakest links is nearly eight times greater” than the broad junk-bond market, analysts Nicole Serino and Sudeep Kash wrote. “The rise in the weakest links tally may signify higher default rates ahead.”This report is catnip for those who believe the high-yield consensus. The longest economic expansion in U.S. history has effectively stamped out default risk except around the edges of the bond market. Notably, even with all these weakest links, S&P still says its base case is for the U.S. default rate to reach 3.4% by mid-2020 — hardly an apocalypse. But if there’s even a chance that corporate failures exceed estimates, bondholders aren’t the types to stick around and risk it. At least not until the securities get too cheap to pass up.Goldman Sachs Asset Management is one of the few contrarians suggesting the market might already be at that point. “We are starting to find opportunities where we are willing to go down in quality,” Ashish Shah, the firm’s co-chief investment officer of fixed income, said last week. “We think the market is being too bearish on the economy.” In Shah’s view, investors may be hesitant to make risky bets in the final months of 2019 but will get aggressive in the new year.Obviously, Shah isn’t endorsing all low-rated bonds. No credit investor will ever recommend a rating category or an industry broadly. But even just the suggestion of picking and choosing among the riskiest junk debt goes against the grain. Time will prove this stance either mad or brilliant.It’s a tricky call. By Shah’s own thought process, buying riskier junk bonds now might be getting in too early if most investors are going to clean up their portfolios heading into the end of the year. Traders are all-too-familiar with the pain from December 2018, for one, which was the high-yield market’s worst month in three years.On the other hand, the Federal Reserve isn’t tightening monetary policy as it was at the end of last year. Rather, policy makers have cut interest rates twice since July and look poised to do it again on Oct. 30. Those actions are all in the name of sustaining the economic expansion, which should bolster lower-rated companies. Dallas Fed President Robert Kaplan even noted last week that, in hindsight, the criticism of the December 2018 rate increase was fair. Now, interest-rate cuts are far from a guarantee that the economy can keep chugging along. Oaktree Capital Group LLC’s co-founder, Howard Marks, for one, is skeptical that the Fed can hold off an eventual recession. He said last week that his firm, one of the world’s largest distressed-debt investors, has gradually been putting more emphasis on safety in credit, though he’s still comfortable holding single-B rated obligations that his analysts have vetted. “Ratings don’t tell you whether something is safe or not,” he said.Money managers will always criticize ratings companies. But now credit raters are also flagging that a growing number of companies are at risk of deteriorating. The S&P report, for instance, shows the U.S. has 177 “weakest links,” compared with the five-year average of 138 and the 10-year average of 114. That ought to concern those who believe that credit-rating companies, on average, tend to hand out grades that are too high. Morgan Stanley strategists, for instance, used similar language to S&P in a report that concluded “beneath the veneer of relative spread resilience and muted realized defaults, the weak links in the leveraged credit markets are coming under pressure.”At the same time, markets have fallen for the end-of-cycle head fake time and again. Fed Vice Chair Richard Clarida, in remarks last week before the central bank’s blackout period, said that the global economy is “muddling through” and that the situation isn’t dire. That seems like a fair assessment. In those kinds of conditions, the riskiest junk bonds can largely find a way to scrape by as well.That kind of flimsy assurance doesn’t cut it anymore for a number of high-yield investors. Until (or unless) more of them join Goldman Sachs Asset Management in wading back into the risky end of the market, the dominant up-in-quality consensus looks unstoppable.To contact the author of this story: Brian Chappatta at firstname.lastname@example.orgTo contact the editor responsible for this story: Daniel Niemi at email@example.comThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Brian Chappatta is a Bloomberg Opinion columnist covering debt markets. He previously covered bonds for Bloomberg News. He is also a CFA charterholder.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.
Morgan Stanley today announced the launch of the Jewish Values Tool Kit designed to facilitate meaningful conversations about the wellspring of values shared among families, boards and the Financial Advisors and Institutional Consultants who serve them. The Jewish Values Tool Kit, a collaboration between Morgan Stanley’s Investing with Impact and Philanthropy Management groups, is designed to enable Morgan Stanley’s Financial Advisors to guide their clients in creating investment and strategic grant making portfolios that are consistent with their long-term financial goals and reflect a personalized vision of aligning with their Jewish values.
Casper Sleep Inc. is working with Morgan Stanley and Goldman Sachs Group Inc. on an initial public offering, according to a Bloomberg report. The New York-based online mattress seller's IPO could occur by the end of this year, or in the first half of 2020, the Bloomberg report said, citing people with knowledge of he matter. Casper's valuation could exceed $1.1 billion, the report said. The company is reportedly working on going public at a time that the Renaissance IPO ETF has lost 13.6% over the past three months while the S&P 500 has tacked on 0.3%.
Dutch pension manager PGGM disclosed third-quarter stock trades. It nearly halved its investment in Disney and exited its position in Celgene completely.
(Bloomberg) -- Online mattress retailer Casper Sleep Inc. is working with Morgan Stanley and Goldman Sachs Group Inc. on a U.S. initial public offering, according to people with knowledge of the matter.The New York-based company could go public as soon as this year or the first half of 2020, said the people, who asked not to be identified because the information is private.Casper, which sells and delivers mattresses directly to consumers, reached a $1.1 billion valuation this year in its most recent private funding round. Target Corp., New Enterprise Associates and Dani Reiss, the chief executive officer of Canada Goose Holdings Inc., are among its investors.The company could attain a higher valuation in an IPO, one of the people said.Representatives for Casper, Morgan Stanley and Goldman Sachs declined to comment.Despite poor performances by high-profile listings including Peloton Interactive Inc. and the collapse of WeWork’s IPO plans, many companies are still aiming to go public before end of the year.Casper, which has expanded its products to include bedding, pillows and bed frames, operates in the U.S., Canada, the U.K., Germany, Switzerland and Austria. CEO Philip Krim said in March that the company’s next big international market would be Asia.The company also plans to open hundreds of physical stores. Part of its motive for going public is to raise capital for that expansion, one of the people said.(Updates with Casper’s response in fifth paragraph)To contact the reporters on this story: Crystal Tse in New York at firstname.lastname@example.org;Alistair Barr in San Francisco at email@example.comTo contact the editors responsible for this story: Liana Baker at firstname.lastname@example.org, ;Jillian Ward at email@example.com, Michael Hytha, Matthew MonksFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
On Thursday, Morgan Stanley released its Q3 results, its highest Q3 results in the last decade. Its stock reacted positively and opened at $44.39.
Daniel Simkowitz, Head of Investment Management of Morgan Stanley, will speak at the Bank of America Merrill Lynch Future of Financials Conference in New York on Wednesday, November 6, 2019 at 10:30 a.m.
Morgan Stanley equity strategist Michael Wilson suggested Oct. 14 that the mini-trade deal with China announced by Donald Trump the previous week is not going to help stocks reverse their course and move higher despite the two-day rally on the news. "The bottom line is that without a significant roll-back of existing tariffs, we don't see how a 'mini-deal' will change the currently negative trajectory of growth in both the economy and earnings," Wilson stated. Furthermore, Wilson sees the December 2018 bloodbath for stocks repeating itself, albeit in a slightly less dramatic fashion due to the fact monetary policy has eased and interest rates are lower.InvestorPlace - Stock Market News, Stock Advice & Trading TipsLast year, U.S. stocks declined more in the month of December than they had since the Great Depression, with the S&P 500 and Dow Jones Industrial Average losing 9% and 8.7%, respectively. If Wilson is correct, it's possible that we could see stocks fall by 4-5% in December 2019, putting a bad ending on what has been a very good year. * The 10 Best Mutual Funds for Your 401k For those who are worried about what might happen in the final month of the year, here are 10 stocks to sell before December's meltdown. Stocks to Sell Before the December Meltdown: Netflix (NFLX)Source: Alex Ruhl / Shutterstock.com On Oct. 16, Netflix (NASDAQ:NFLX) reported Q3 2019 earnings that were a mixed bag. The good news is that the video streamer reported earnings of $1.47 a share, significantly higher than the consensus estimate of $1.05, while its revenues were $5.24 billion, just $10 million lower than analyst expectations and 31% higher than a year earlier. The bad news is that it added 6.8 million subscribers in the third quarter, 200,000 below the estimate. In the U.S., it delivered just 500,000 subscribers, 300,000 lower than analyst expectations. Macquarie analysts Tim Nollen and Jordan Boretz did not like what they heard from the company, downgrading its stock from "outperform" to "neutral" on concerns that the streaming competition is about to get really intense -- Disney (NYSE:DIS), AT&T (NYSE:T), Comcast (NASDAQ:CMCSA) and Apple (NASDAQ:AAPL) are all introducing video streaming services over the next six months. "We think it will be hard for Netflix to grow much more in the US, and we suspect pricing power is limited," the analysts said in a note to investors. By the end of November, investors will have a good idea of how much damage the competition will inflict on NFLX stock. TD Ameritrade (AMTD)Source: Bandersnatch / Shutterstock.com By now, most investors are likely aware that TD Ameritrade (NASDAQ:AMTD) announced Oct. 2 that it has eliminated all commissions for the online trade of U.S. stocks, options and exchange-traded funds."We expect Fidelity and E*TRADE to react next and announce cuts to their own commission rates over the short-term, with both likely matching SCHW's/AMTD's zero rate," said Credit Suisse research analyst Craig Siegenthaler in a note to clients. Shortly after TD Ameritrade's announcement, E-Trade Financial (NASDAQ:ETFC) followed suit. About a week later, Fidelity joined the broker price wars by introducing zero-commission trading.All of these cuts come on the heels of Charles Schwab (NYSE:SCHW) cutting commissions, a move that hit AMTD stock hard, sending it down by 25% on the news. It was the stock's worst day in 20 years. * 10 Buy-and-Hold Stocks to Own Forever With an over reliance on commission revenue, look for TD Ameritrade's stock to continue to feel the heat. Mohawk Industries (MHK)Source: IgorGolovniov / Shutterstock.com The last few years have not been good for owners of Mohawk Industries (NYSE:MHK) stock. Down 13.9% over the past 52 weeks through Oct. 16, it has got a five-year annualized total return of -0.07%. By comparison, the Morningstar U.S. Market generated almost 12% over the same five years. Some of the past five years were good to the flooring industry, so the fact that it has performed so poorly suggests that its business needs a revamp. Not to mention its business appears to be getting weaker. According to Benzinga, Wells Fargo analyst Truman Patterson recently downgraded MHK stock to "underperform" from "market perform," while keeping the target price at $110. Patterson suggested in a note to clients that global demand for its products is weakening, a sign that a recession might not be that far off. That's not good when you consider that its inventories are rising at double the level of its sales, which should lead to lower gross margins over the next few quarters. Slowing global growth is a big reason that I recommended in September that Mohawk put itself up for sale. If it doesn't do something over the next few months, you can be sure it will test sub-$100 prices. Terex (TEX)Source: Roman Korotkov / Shutterstock.com Two analysts downgraded Terex (NYSE:TEX) stock recently. Citigroup analyst Timothy Thein cut its rating from "neutral" to "sell" Oct. 15, while also cutting the target price by $3 to $24, about 10% lower than where it currently trades. The second research firm to cut the crane manufacturer's rating is Barclays. Analyst Adam Seiden downgraded Terex from "equal weight" to "underweight" on Oct. 11. Making matters worse, the analyst also cut its target price by $13 to $20, 30% lower than where it currently trades. Seiden believes that Terex's business with rental companies is going to slow as the economy moves closer to a recession. In addition, its aerials business should see lower pricing in 2020 as a result of lower demand. * 7 Restaurant Stocks to Leave on Your Plate Both of these downgrades suggest that TEX stock will continue to deliver mediocre returns for its shareholders. Crowdstrike (CRWD)Source: Piotr Swat / Shutterstock.com It has been four months since CrowdStrike (NASDAQ:CRWD) went public at $34 a share. The cloud-based cybersecurity firm gained almost 71% on its first day of trading, closing at $58. Rising to as high as $101.88 in August, it has since lost 50% of those gains. Some analysts expect the CRWD stock price to continue to decline over the final two-and-a-half months of the year. On Oct. 14, Citi analyst Walter Pritchard initiated coverage of the cybersecurity stock with a "sell" rating and a $43 target price, 17% lower than its current share price. "We see expansion into adjacencies (like EP management and cloud workload) as challenging as they are crowded already." Pritchard wrote in a note to clients. A few days prior to Citi giving CRWD a sell rating, Goldman Sachs analyst Heather Bellini downgraded its stock from "neutral" to "sell," suggesting that growth expectations for Crowdstrike are unrealistic.They say you can often buy a stock for less than its IPO price within 12-24 months. While I don't believe it could trade below $34 by the end of December, the low-to-mid $40's is definitely a possibility, especially if December turns out like last year. Domino's Pizza (DPZ)Source: Ken Wolter / Shutterstock.com Back in April 2017, I wrote about Domino's Pizza's (NYSE:DPZ) stock outperforming Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL) since they both went public in the summer of 2004.Over 12.5 years, DPZ stock delivered a total return of 2,401%, 846 percentage points ahead of Google. It's an unbelievable stat that shows the power of a strong brand.And then CEO J. Patrick Doyle stepped down on July 1, 2018, after leading the pizza chain for eight very successful years. Since Doyle stepped down, DPZ stock has lost almost 9% of its value over 18 months that have been good for the markets in general.The problem for current CEO Richard Allison, who ran the company's international business, before taking over the top job from Doyle, is that third-party delivery services such as GrubHub (NYSE:GRUB) and Uber Eats provide hungry consumers much greater food options beyond the traditional delivery stables of pizza and Chinese food. In addition, these third-party services offer deep discounts to grab market share, crimping Domino's same-store sales growth. * 7 Big Bank Stocks on the Move Although this discounting is unlikely to last, it's not likely to stop before 2020, which means DPZ stock could see further deterioration in its share price and become one of the top stocks to sell if we see another market meltdown in December. Lincoln Electric (LECO)Source: Lutsenko_Oleksandr / Shutterstock.com Over the past two weeks, a number of research firms downgraded Lincoln Electric (NASDAQ:LECO) stock. On Oct. 9, Stifel Financial downgraded the manufacturer of welding and cutting products, from "buy" to "hold" and gave it a target price of $84, several dollars below its current share price. A day earlier, Oppenheimer analyst Bryan Blair cut LECO stock's rating from "outperform" to "perform" as a result of broad-based macro headwinds that will hurt the company's sales, which are quite cyclical in nature. Although Blair believes Lincoln has a good long-term future, an uncertain outlook makes it tough to recommend the company despite its healthy balance sheet. According to the Wall Street Journal, 12 analysts cover LECO with just two giving it a "buy" or 'overweight" rating, while nine rate hold and one analyst gives it a "sell" rating. The average target price is $91, less than $4 above its current share price. United Rentals (URI)Source: Casimiro PT / Shutterstock.com United Rentals (NYSE:URI) reported Q3 2019 results Oct. 17 and they were pretty darn good. On the top line, revenues were $2.49 billion, $40 million higher than the consensus estimate, and 17.6% better than its sales a year ago. Rental revenues were much higher thanks in large part to two acquisitions it made in 2018. On the bottom line, it also beat the consensus estimate of adjusted earnings of $5.53 a share, coming in $5.96, 26% higher than a year earlier. However, URI stock dropped as a result of its revised guidance that lowered revenues for 2019 at the high end of its range, from $9.45 billion to $9.35 billion, while also lowering the top end of its range for adjusted EBITDA, from $4.5 billion to $4.4 billion.Earlier in October, UBS analyst Steven Fisher downgraded URI stock from "buy" to "neutral," while taking a big chunk out of his target price, dropping it from $166 to $118 on concerns construction is going to slow over the next few months as projects get put on hold or canceled altogether. * 10 Buy-and-Hold Stocks to Own Forever Until the economy gets stronger, the rental business could face some serious headwinds. Align Technology (ALGN)Source: rafapress / Shutterstock.com Guggenheim analyst Glen Santangelo downgraded Align Technology (NASDAQ:ALGN) -- the people behind Invisalign, the maker of at-home clear aligners that help straighten your teeth -- from "buy" to "neutral" Oct. 7 while also cutting his target price by 20% to $200. "It is not lost on us that the shares are down meaningfully in the wake of 2Q results, but after doing a deeper dive into the competitive landscape, we underappreciated the rapid evolution of this market," Santangelo wrote in a note to clients. "We believe it will be challenging for sentiment to improve until there is more evidence available to validate ALGN's long-term competitive position -- and shares will likely be range-bound in the interim."Some of its competitors include SmileDirectClub (NASDAQ:SDC), which went public in September, Candid Co., Smilelove and SnapCorrect. If SmileDirect's performance is any indication -- its stock is down 57% since its Sept. 11 IPO on concerns its practices put customers at risk -- the teeth straightening business is about to get a whole lot more difficult. Tata Motors (TTM)Source: imwaltersy / Shutterstock.com If you bought Tata Motors (NYSE:TTM) stock five years ago, today you'd have just 21% of your original investment. Tata, for those unfamiliar, is the Indian parent of Jaguar and Land Rover, the British business it bought from Ford (NYSE:F) in 2008 for $2.3 billion. Despite the big gain Oct. 17 on news U.K. Prime Minister Boris Johnson had reached a Brexit deal with the E.U., TTM stock remains a major disappointment. In 2019, it's down almost 27%. Over the past five years, it has averaged an annualized total return of -26%.Late in 2018, I thought the spinoff of Jaguar Land Rover made perfect sense because luxury car companies were hot. Now that Brexit might actually happen, it's unlikely that Tata would want to part with its crown jewel, but it should, because it has made a lot of money for the company since its acquisition 11 years ago.However, thanks to the deterioration of its business in China, once thought to be its cash cow, a Brexit deal probably isn't enough to turnaround the luxury automaker. Is Tata a value play or a value trap? * 7 Restaurant Stocks to Leave on Your Plate We'll know by the end of December.At the time of this writing Will Ashworth did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Reasons to Buy Canopy Growth Stock * 7 Restaurant Stocks to Leave on Your Plate * 4 Turnaround Plays to Buy Now The post 10 Stocks to Sell Before Decemberas Meltdown appeared first on InvestorPlace.
(Bloomberg) -- Taiwan Semiconductor Manufacturing Co.’s plan to spend as much as $15 billion on technology and capacity in 2019 -- roughly 50% higher than originally envisioned -- is spurring hopes that the dawn of fifth-generation networks will rev up global chip and smartphone demand.The primary chip supplier to Apple Inc. told investors it’s sharply increasing its estimate for 2019 capital expenditure to between $14 billion to $15 billion from as much as $11 billion previously, and Chief Financial Officer Wendell Huang said 2020 spending will be similar. The Taiwanese company also projected current-quarter revenue ahead of estimates, an affirmation that the latest iPhones have proven a hit with consumers.Chief Executive Officer C. C. Wei sketched out hopes that the emergence of 5G, the foundation of future technologies from automated factories and smart homes to blazing-fast consumer electronics, will help underpin its business in coming years. TSMC, which is the world’s largest contract chipmaker, and is seen as a barometer for the tech industry thanks to its heft and place in the supply chain, said the advent of 5G-enabled smartphones will result in more chips in devices than before.“We are much more optimistic than six months ago,” Wei said, adding that the 5G momentum was larger than the company expected. TSMC has increased its forecast of the 5G smartphone penetration rate in 2020 to a percentage in the mid-teens from its previous single-digit estimate. Many countries, especially larger ones, were rapidly pushing ahead with 5G rollout plans, Wei added.TSMC Puts All Its Chips on Capex. That’s a Smart Bet: Tim CulpanTSMC’s capital spending plan and outlook prompted price-target hikes from several analysts including at Goldman Sachs and Morgan Stanley. Its shares, which notched a lifetime high just this month, stood largely unchanged Friday in Taipei. More broadly, suppliers including ASML Holding NV, Applied Materials Inc. and Tokyo Electron Ltd. could stand to benefit from TSMC’s capex increase.In addition to 5G, TSMC’s push is driven by growing demand from tech giants such as Apple and Huawei Technologies Co., said Roger Sheng, a semiconductor analyst with Gartner. Although the outlook remains uncertain for 2020, the global semiconductor market is set to make a gradual recovery on the back of the demand related to 5G, AI and automotive applications, according to a note from TrendForce on Oct. 2.“Everyone is waiting to see a bounce back of global smartphone market next year after Apple adopts 5G. The self-designed Huawei chipsets will also push demand, as will Qualcomm’s 5nm chips for next year and AMD’s server chip demand,” Sheng said.On Thursday, TSMC also underlined expectations that Apple, its largest customer, is riding a bounce-back in demand for the iPhones after a lukewarm 2018 iteration. Lower prices and aging handsets are helping drive demand for the iPhone 11 range, and Apple is said to be asking its assemblers to target the high end of an original forecast for 70 million to 75 million unit shipments in 2019.Read more: Apple’s Lower Prices, Users’ Aging Handsets Drive IPhone DemandThe Taiwanese company foresees revenue of $10.2 billion to $10.3 billion in the pivotal December holiday quarter, surpassing an average projection for about $9.9 billion. TSMC gave that sales outlook after reporting net income of NT$101.1 billion ($3.3 billion) for the September quarter, handily beating estimates as the global chip market recovers.Still, fallout from ongoing trade conflicts could crimp an industry revival. While TSMC doesn’t factor trade conflicts into its capex plans, any international trade war will have a negative effect on the semiconductor sector, Wei said. China is an especially important market for TSMC and the semiconductor industry, he added.TSMC and its industry peers had grappled with a plateauing smartphone market, efforts by Apple to move beyond hardware, and U.S. tech-export curbs on No. 2 customer Huawei. But investors are growing more confident that the emergence of 5G will prop up chip prices and demand, while the latest iPhones are firing up consumers. TSMC is in fact straining against capacity constraints in the current quarter, Sanford C. Bernstein analyst Mark Li said.The “iPhone is driving stronger near-term demand. We believe the competitive pricing of iPhone 11 is garnering good traction and has prompted Apple to place more orders at the supply chain,” Li said in an Oct. 10 note.Read more: Taiwan’s Market Fortunes Are Tied to TSMC Like Never Before(Updates with analysts’ hikes and shares from the fifth paragraph)To contact the reporters on this story: Debby Wu in Taipei at firstname.lastname@example.org;Gao Yuan in Beijing at email@example.comTo contact the editors responsible for this story: Peter Elstrom at firstname.lastname@example.org, Edwin Chan, Colum MurphyFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Wall Street advanced on Thursday as investor sentiment was buoyed by a string of corporate earnings beats and encouraging geopolitical developments. "(Results have) been good, but we haven't really gotten enough data points yet to see how earnings will be versus expectations," Massocca said.
Morgan Stanley earnings easily topped third-quarter estimates, capping bank giant earnings. Morgan Stanley stock rose but has been in a long slide.
A reported Brexit deal sent stocks higher in morning trade, although equities had trouble maintaining those gains throughout the session. Let's look at a few top stock trades for Friday. Top Stock Trades for Tomorrow No. 1: Morgan Stanley (MS) Morgan Stanley (NYSE:MS) popped on earnings but is struggling to hold onto its early gains. Now over all of its major moving averages, MS stock looks better than it has all month.However, it still remains range-bound between $39.50 and $45.50. Until it can push through resistance, it may remain stuck in this range.InvestorPlace - Stock Market News, Stock Advice & Trading Tips Top Stock Trades for Tomorrow No. 2: Facebook (FB)Despite a continual flow of negative news and headlines, Facebook (NASDAQ:FB) stock continues to hold up. * 10 Buy-and-Hold Stocks to Own Forever It's above all of its major moving averages, as well as downtrend resistance (blue line). Now running into its 78.6% retracement and a recent level of resistance near $190, it will be vital for bulls to push it through this mark.If it can, look for a rally above last month's high at $193.10, and then above $195. In this event, look for $190 to act as support on a pullback. If resistance holds steady, look to see if the 50-day moving average can buoy FB on a pullback. Top Stock Trades for Tomorrow No. 3: Honeywell (HON)Honeywell (NYSE:HON) is advancing on earnings, but is struggling to push through its downtrend (purple line) and the 100-day moving average. If it can do that, it puts the $172.50 mark on the table, with the $177.58 highs above that.On the downside, look to see if the 50-day moving average can act as support. Below it puts a test of the 200-day moving average and uptrend support (blue line) in the cards. Top Stock Trades for Tomorrow No. 4: Gogo (GOGO)A look at Gogo's (NYSE:GOGO) daily chart above shows the company has secured a higher low, which is now connected by a blue trend line on the chart above. I want to see shares push through $6, putting $7-plus on the table.As you can also see, momentum is starting to turn in bulls' favor via the MACD reading (blue circle). If $6 acts as resistance, bulls need to see the 50-day act as support.On the weekly chart above, traders can see the stock coiling below $6 and the 100-week moving average. Above them opens the door to the recent high at $7.23. Above that and $8 is possible. On a longer timeframe, the 50-week moving average is a must-hold mark.Gogo has been an excellent trade for us lately, although it is a speculative play. Top Stock Trades for Tomorrow No. 5: Union Pacific (UNP)Union Pacific (NYSE:UNP) is rallying on earnings, but it's running into some headwinds. Shares are being stymied by the 200-day and 100-day moving averages. It's also hitting channel resistance (blue line).However, not all hope is lost for the bulls. On the move, UNP reclaimed its 50-day moving average. It also held the 61.8% retracement. If shares can stay above these two marks, then bulls may look for it to push through resistance.Below the 61.8% and UNP starts to lose some of the little appeal that it has. A fall below this mark could usher in $157.50 or lower and even drop the stock into the low $150's.The charts are messy for this one. Over the 61.8% is good, but over the 100-day moving average is far better. Some may prefer to wait for a clean breakout over $170, putting $178-plus on the table.Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell. As of this writing, Bret Kenwell is long GOGO. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * The 7 Best Penny Stocks to Buy * 7 Bank Stocks to Avoid Now at All Costs * The 10 Best Mutual Funds for Your 401k The post 5 Top Stock Trades for Friday: MS, FB, HON, GOGO, UNP appeared first on InvestorPlace.
Signs of hope for a Brexit deal and U.S.-China trade war updates. Some disappointing U.S. manufacturing and retail data. Q3 earnings results from the likes of Netflix. And why Google parent Alphabet is a Zack Ranks 1 (Strong Buy) stock. - Free Lunch
Wall Street gained ground on Thursday as positive geopolitical developments and a string of corporate earnings beats put investors in a buying mood. Britain and the European Union agreed to a severance deal, potentially wrapping up three years of uncertainties after Britons voted to leave the bloc. "Brexit and trade have a much longer runway.
The Wall Street giant says its advisory ranks declined by 80 during the third quarter. Meanwhile, its wealth management revenue falls short of Wall Street estimates.
(Bloomberg Opinion) -- On March 12, 2018, Morgan Stanley’s share price reached $59.38. That was a watershed moment — the highest level since November 2007, before the start of the Great Recession.Since then, the Wall Street bank’s stock has stumbled. Heading into this week, Morgan Stanley shares had fallen 26% since that post-recession high, a steeper decline than any of the other largest U.S. banks. Even just looking at 2019, Morgan Stanley’s 8% total return was meager compared with its peers: Citigroup Inc.’s 37.5%, Goldman Sachs Group Inc.’s 24.3%, JPMorgan Chase & Co.’s 22.7%, Bank of America Corp.’s 19.3% and Wells Fargo & Co.’s 10%.So it follows that Morgan Stanley’s surprisingly strong third-quarter results on Thursday led to a swift reaction among investors. Its shares surged more than 4% in pre-market trading, the sharpest initial increase among its rivals. By exceeding expectations pretty much across the board, the bank essentially proved that while it’s been down as of late, it’s by no means out.A quick recap of the earnings report: Like its rivals that reported earlier, Morgan Stanley’s fixed-income trading easily beat expectations, jumping 21% from a year ago compared with analyst predictions of a 5% decline. Its total sales and trading revenue rose 10%, a sharper increase than all peers but JPMorgan, and in aggregate dollar terms was the biggest beat on Wall Street. Morgan Stanley’s investment bankers also topped estimates. It wasn’t perfect, as wealth-management revenue fell just short of forecasts, but overall it could only be described as much better than what analysts had anticipated.Veering into the subjective for a moment, I was struck by just how confident and exuberant Morgan Stanley CEO James Gorman sounded as he kicked off the bank’s earnings conference call. In his opening statement, he spoke forcefully about how he’s looking forward to “gain share in several of our businesses” and emphatically stated that there’s “tremendous upside here.” And I’m not the only one who noticed. In the words of Bloomberg News’s Max Abelson, who was blogging about the results: “Gorman sounds so confident right now. He’s riffing, giving a lot of color, and seems to just be enjoying himself.”Perhaps that’s to be expected after a quarter like this. And, of course, shares can only rise so much on CEO optimism. But the early feedback is in from analysts, and it’s good. “Overall, we are impressed with the revenue strength and wealth management margin and believe that investors should take considerable comfort from this result,” said John Heagerty at Atlantic Equities LLP. “With lots of investors somewhere between negative to indifferent on Morgan Stanley, we’d expect a bit of a lift,” said Evercore ISI’s Glenn Schorr (who, interestingly, has held an “outperform” recommendation for years). Susan Roth Katzke of Credit Suisse called earnings per share “well ahead of what were materially reduced expectations.”The undertone in those last two comments is clear. The market appears to have been too downbeat on Morgan Stanley and is adjusting accordingly. It’s what happens after this initial move that’s tricky. Morgan Stanley’s shares presumably trailed rivals for a reason — did anything from the third quarter drastically change those views? The answer to that question might very well depend on investors’ confidence in Gorman and his executive team. Mike Mayo of Wells Fargo kicked off the conference call by bluntly stating that the bank’s expenses grew faster than revenue and asking whether there’s confidence that will change. “That’s what we’re paid to do,” Gorman said. “We are maniacally focused on it.” Later, Gorman added that Morgan Stanley has proved to be nimble as the industry changes: “We’ve shown a willingness to adjust our business model over time; the build-out of the wealth management was clearly part of that strategy.”I wrote after the bank’s second-quarter earnings that the shift to wealth management, which now makes up about half its revenue, showed Morgan Stanley was playing the long game when trading revenue can be so hit-or-miss from one period to the next. Whether investors want to stick around for the long run remains to be seen. But, at least for one day, traders are on board with Gorman’s vision.To contact the author of this story: Brian Chappatta at email@example.comTo contact the editor responsible for this story: Daniel Niemi at firstname.lastname@example.orgThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Brian Chappatta is a Bloomberg Opinion columnist covering debt markets. He previously covered bonds for Bloomberg News. He is also a CFA charterholder.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.