|Bid||0.00 x 0|
|Ask||0.00 x 0|
|Day's Range||54.10 - 55.33|
|52 Week Range||40.43 - 59.38|
|PE Ratio (TTM)||17.74|
|Forward Dividend & Yield||1.00 (1.82%)|
|1y Target Est||N/A|
Morgan Stanley’s (MS) total assets under management rose 8% YoY (year-over-year) to $2.4 trillion on March 31, 2018, helped by a higher valuation of holdings and flow. Quarter-over-quarter, its total assets under management were flat, reflecting lower valuation increases and offset by new, long-term flow.
Morgan Stanley (MS) benefited from higher volatility and posted strong operating numbers. The bank’s Institutional Securities segment posted net income of $2.1 billion, compared with $1.7 billion in 1Q17. The segment’s top line rose to $6.1 billion from $5.2 billion in 1Q17, largely due to sales and trading amid higher market volatility.
The Republican tax overhaul, passed in December, has saved some of America's largest corporations billions in taxes. Financial institutions, among the first companies that typically ring in the corporate earnings season in the U.S., have historically paid some of the highest taxes due to their domestically centered business models. America's leading banks such as JPMorgan Chase & Co. ( JPM), Goldman Sachs Group Inc. ( GS) and Morgan Stanley ( MS) saw their tax rates fall below 17% and 23% for the January through March quarter.
Morgan Stanley reported its results for the first quarter earlier this week, and the investment banking giant exceeded investor expectations by a big margin as it churned out the best ever quarterly income figure in its history.
Morgan Stanley (MS) posted EPS (earnings per share) of $1.45 in 1Q18, higher than analysts’ estimate of $1.25 and its EPS of $1 in 1Q17. The investment bank benefited from market volatility and higher trading revenue across product offerings. It posted net revenue of $11.1 billion and net income of $2.6 billion, representing growth of 14% and 40%, respectively, helped by lower tax, higher trading, and improved efficiency.
The International Monetary Fund (or IMF) also warned that the downside risks to world financial stability have increased over the past six months. In this context, it added, “Valuations of risky assets are still stretched, with some late-stage credit cycle dynamics emerging, reminiscent of the pre-crisis period.” This it believes could lead to the unwinding of risks, leading to higher risk premiums and repricing of risky assets. The IMF’s view of US equity markets is similar to that of Morgan Stanley’s (MS).
A Wall Street regulator has suspended the co-founder of the controversial Tezos cryptocurrency project from associating with broker-dealers for two years, part of a settlement to resolve allegations that he made false statements about his side venture while working at Morgan Stanley (MS.N). The Financial Industry Regulatory Authority (FINRA) fined Arthur Breitman $20,000 for the alleged violations, which he neither admitted nor denied, in an agreement dated April 18. The action follows a Reuters investigation (https://reut.rs/2gPOMNH) published in October that found Breitman, a French citizen registered with FINRA, had not reported any outside business activities while working at Morgan Stanley in 2014 and 2015 when he was developing and pitching Tezos.
In the previous part of this series, we saw that Morgan Stanley (MS) believes the bull market might end soon and the earnings growth of the S&P 500 Index (SPY) is gradually reaching its peak. Tax reform played an important role in market movement. Although many market participants expect a higher infrastructure spending bill and defense spending to boost the equity markets, Morgan Stanley believes the boost could be short-term.
Morgan Stanley (MS.N) on Thursday asked to have a lawsuit against it for 2.7 billion euros (2.35 billion pounds) in damages thrown out of an Italian administrative court, an Italian judge said. At the opening of the trial in Rome, the U.S. investment bank the other defendants asked a three-judge panel at the Court of Accounts, which rules on abuses of public funds, to reject the case in an acknowledgement that the judges do not have jurisdiction, Marco Fratini, one of the judges, said. The defendants, who deny any wrongdoing, maintain the issue should be reviewed by a civil court.
Morgan Stanley on Thursday asked to have a lawsuit against it for 2.7 billion euros ($3.34 billion) in damages thrown out of an Italian administrative court, an Italian judge said. At the opening of the trial in Rome, the U.S. investment bank the other defendants asked a three-judge panel at the Court of Accounts, which rules on abuses of public funds, to reject the case in an acknowledgement that the judges do not have jurisdiction, Marco Fratini, one of the judges, said. The defendants, who deny any wrongdoing, maintain the issue should be reviewed by a civil court.
Goldman Sachs (GS) posted revenues of $1.8 billion for Investment Banking segment in 1Q18, up 5% on a YoY (year-over-year) basis and down 16% on a sequential basis. Overall, banks’ (XLF) investment banking segments have seen a sequential decline in fundraising and advisory fees in 1Q18, mainly due to volatile markets and policy changes. However, Goldman outperformed in equity and debt underwriting with YoY growth of 27%, helped by fund raises across structured and traditional debt products, public offerings, and private placements in equities.
Morgan Stanley, the last of the major U.S. banks to report first-quarter earnings, posted strong-enough results to trigger a 3% bounce in its early-morning share price, something its rivals couldn’t manage. In a quarter when several major competitors beat analyst estimates, Morgan Stanley stood out in terms of all-around performance. Long a work in progress under Chief Executive James Gorman, the bank now looks like a well-oiled machine.
Morgan Stanley reported record quarterly profits, the last of the big U.S. banks to benefit from a potent cocktail of lower taxes, active markets, lower expenses and economies growing in lockstep.
The U.S. Securities and Exchange Commission on Wednesday proposed a new rule that would require brokers at firms like Morgan Stanley and Merrill Lynch Wealth Management to clearly explain the fees investors pay and commissions brokers earn when giving financial advice. The 1,000-page Regulation Best Interest would require brokerages to put that information, along with any conflicts of interest and questions clients should ask, in a four-page disclosure document that brokers would be required to give investors. The rule comes after more than a decade of regulatory deliberation over how to address conflicts of interest in the investment advice industry.
By a 4 to 1 vote, the Securities and Exchange Commission proposed a rule to establish a standard of conduct for broker-dealers, which will require complying with obligations of disclosure, care and conflicts of interest. The new rules also will require registered investment advisers and broker-dealers to provide to retail investors a brief relationship summary that isn't longer than four pages, with information on issues such as fees and conflicts of interest. It would also clarify the definition of the fiduciary duty for investment advisers.
Akamai Technologies, Inc. (NASDAQ:AKAM) is having an exciting 2018. Akamai Technologies stock is still riding high heading into earnings at the end of the month. On the positive side, its cloud security business is taking off.
rose just 0.06% after posting a 38% increase in first-quarter profit. S&P 500 companies are expected to post an 18.6% increase in first-quarter profit, the biggest rise in seven years, according to Thomson Reuters.
This is an increase over the company’s earnings per share of $1.00 from the same time last year. It was also good news for MS by coming in well above Wall Street’s earnings per share estimate of $1.25 for the period. Net income reported by Morgan Stanley for the first quarter of 2018 was $2.70 billion.
As investors flocked to stock, bond, commodity and currency markets to adjust their portfolios, Morgan Stanley’s broader institutional securities business reported its best results since 2007. Trading revenue soared 26 percent to $4.4 billion, topping Morgan Stanley’s chief rival, Goldman Sachs Group Inc, in dollar terms. "If Morgan Stanley's strategy could be defined simply, it would be that we will do fine when the markets are tough and we would do well when the markets are good," Chief Executive Officer James Gorman said on a call with analysts.
Apr.19 -- Lisa Shalett, head of investment and portfolio strategies at Morgan Stanley, discusses U.S. markets and the economic cycle on "Bloomberg Markets."
It's been a blowout season for the banks, but financials are still negative for the year. A look at what's holding them back, with Jason Goldberg, Barclays.