|Bid||44.68 x 3000|
|Ask||44.69 x 1100|
|Day's Range||44.33 - 44.71|
|52 Week Range||36.74 - 51.53|
|Beta (3Y Monthly)||1.29|
|PE Ratio (TTM)||9.75|
|Earnings Date||Oct 14, 2019 - Oct 18, 2019|
|Forward Dividend & Yield||1.40 (3.15%)|
|1y Target Est||53.71|
Bank of America CEO Brian Moynihan just went a long way in showing not all millenials are broke.
Morgan Stanley (MS) reported its second-quarter earnings on Thursday. The bank beat analysts’ consensus EPS estimates for the quarter.
(Bloomberg) -- Vodafone Idea Ltd. has hired Bank of America Corp. and Morgan Stanley to help sell its fiber assets as India’s largest mobile carrier by users seeks to bolster its finances, people familiar with the matter said.The bankers will initiate discussions with potential buyers for the fiber assets, which could be valued at as much as 130 billion rupees ($1.9 billion), the people said, asking not be identified as the talks are private.A final decision has yet to be made on the valuation and the stake to be sold, and the company could bring in more banks for the sale, the people said. Representatives for Vodafone Idea and Morgan Stanley declined to comment, while a Bank of America spokesman didn’t immediately respond to requests for comments.A deal, if successful, would help the phone-service provider add to the funds it’s been raising to pare debt and fend off rivals Bharti Airtel Ltd. and billionaire Mukesh Ambani’s Reliance Jio Infocomm Ltd., an upstart that upended the market after its debut in 2016. In April, Vodafone Idea raised 250 billion rupees from a rights issue, building a war chest as India readies for a 5G network.Vodafone Idea, which was formed by the merger of Vodafone Group Plc’s local unit with tycoon Kumar Mangalam Birla’s Idea Cellular Ltd., has reported losses in every quarter since the deal was announced in 2017.Both Bharti Airtel and Vodafone Idea top the list of Asian peers with highest borrowings, according to data compiled by Bloomberg.Mumbai-based Vodafone Idea is in the process of transferring all of its fiber assets into a separate company before the sale. The unit has about 158,000 kilometers (98,177 miles) of fiber, according to a presentation posted on its website in February.Shares of Vodafone Idea fell 5.4% on Thursday, the biggest drop in almost two months. The stock declined 50% this year, while India’s benchmark Sensex index rose 7.8%.(Updates to add shares performance in the final paragraph.)To contact the reporters on this story: Baiju Kalesh in Mumbai at email@example.com;P R Sanjai in Mumbai at firstname.lastname@example.orgTo contact the editors responsible for this story: Fion Li at email@example.com;Sam Nagarajan at firstname.lastname@example.orgFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Morgan Stanley earnings beat Q2 estimates, following results from Citigroup, JPMorgan Chase, Goldman Sachs and Bank of America.
The stock market again took a break from its robust rally as it digests more earnings results. We've seen plenty of mixed results, but so far, the market is handling the news pretty well. Here are a few top stock trades to watch going into the last trading day of the week. Top Stock Trades for Tomorrow 1: IBM Click to EnlargeInternational Business Machines (NYSE:IBM) started off lower on the day, but climbed more than 4.5% later in the day after reporting its earnings results. InvestorPlace - Stock Market News, Stock Advice & Trading TipsLast week, IBM stock pushed over downtrend resistance (blue line) and this week's move cements it. That prior downtrend mark is now a must-hold level for investors. I would love to see IBM stock stay above the trio of candlesticks that marked the weekly closing highs for the past 52 weeks. That's the black line that comes into play near $146. If it holds, shares could run into the mid- to high-$150s and possibly challenge the 2018 highs. Below the ~$146 mark and we'll need to see if the 10-week moving average holds as support. Top Stock Trades for Tomorrow 2: Honeywell Click to EnlargeLook at the beautiful "inside day" Honeywell (NYSE:HON) is printing after reporting its quarterly results and raising guidance. An inside day occurs when the entire range of the second day is "inside" the range of the prior trading session.Of course, this one is even more interesting as HON stock initially lost, then reclaimed the 50-day on Thursday, but couldn't get above the 21-day moving average. Hmm. This sets up a range trade.Below Wednesday's lows and HON is likely heading lower. Above Wednesday's highs -- remember, that's the prior session -- and HON is likely heading higher. At least, until it runs into potential downtrend resistance (blue line). Top Stock Trades for Tomorrow 3: Philip Morris Click to EnlargePhilip Morris (NYSE:PM) stock erupted 9% after better-than-expected earnings results. The move on the weekly chart thrust the stock above a key downtrend level, as well as the $87 mark. As long as PM holds above $87, bulls can justify a long position. Below it and we'll need to see the 200-week moving average hold as support. On the upside, let's see if PM can push through Thursday's highs and $90. Top Stock Trades for Tomorrow 4: Morgan Stanley Click to EnlargeMorgan Stanley (NYSE:MS) caught a slight lift after reporting second-quarter earnings. The stock continues to put in a series of higher lows and is maintaining above all of its major moving averages. However, it's having trouble pushing through resistance between $44 and $45. Like most major bank stocks, resistance continues to keep these names in check. Over $45 and a move to $46.50 is possible. Above that and $49 is doable. On a pullback, see that $43 holds as support. Below is concerning. Top Stock Trades for Tomorrow 5: Bank of America Click to EnlargeAnother example of a bank stock struggling to breakout? Bank of America (NYSE:BAC).The stock flirted with a breakout over $29.50 on Wednesday after beating on earnings expectations. However, the stock gave up most of its gains going into the close before holding short-term support at $29. BAC stock is stuck in a very tight range between $29 and $29.50. However, it's got plenty of bullish catalysts working in its favor, including earnings growth, revenue growth and a continually rising dividend and buyback. Its valuation continues to drop, too. * 7 Stocks Top Investors Are Buying Now If it can push through $29.50, it could trigger a breakout, first to $30 and possibly up toward $30.75. A move below the 21-day moving average and $29 is concerning.Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell. As of this writing, Bret Kenwell did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Stocks Top Investors Are Buying Now * The 10 Best Cryptocurrencies to Keep on Your Radar * 7 Marijuana Penny Stocks That Could Triple (But You Won't Make Money) The post 5 Top Stock Trades for Friday: IBM, HON, PM, MS, BAC appeared first on InvestorPlace.
A trading slump has taken a toll on Morgan Stanley. The announcement came as Morgan Stanley reported Thursday that its quarterly profit fell 10 percent. Morgan Stanley, which is the smallest of the big U.S. banks, reported a profit of $2.2 billion, or $1.23 a share, on $10.2 billion in revenue, both down from a year ago.
It was the last big U.S. bank to report earnings in a quarter that exposed weaknesses in Wall Street's investment bank and trading businesses. The wealth business, which contributes 44% of Morgan Stanley's revenue, rose 1.9% to $4.40 billion from a year earlier. The bank reported pre-tax profit margin of 28.2% for the business, just above the high end of its 26% to 28% target.
Shares of the investment banking and wealth management giant opened lower after the report but quickly stabilized around a key level.
(Bloomberg Opinion) -- Goldman Sachs Group Inc. and Morgan Stanley are the two Wall Street banks most connected to high-stakes trading. Historically, that made them seem glamorous relative to the other big U.S. institutions, which focused on the more steady business of retail banking.The tide has turned. Persistently low volatility has made it clear that banks can’t count on traders to drive profits. Goldman’s equities revenue beat expectations earlier this week, in a small sign of hope, but Morgan Stanley’s results on Thursday were more far more indicative of the trend. Its $2.13 billion from equities was the highest among banks but was down 14% from a year ago and fell short of even the lowered estimates of $2.27 billion. In fixed income, currencies and commodities, revenue dropped 18% rather than the expected 7% decline.This puts Goldman and Morgan Stanley in a tough spot. They’re not well positioned to immediately compete with Bank of America Corp., Citigroup Inc., JPMorgan Chase & Co. and Wells Fargo & Co. in catering to the banking needs of Main Street. At the same time, the bank executives have to feel pressure to limit the quarter-to-quarter fluctuations that are at the mercy of the whims of the global markets.Reading between the lines, their answer to this quandary appears to be more emphasis on wealth management.Now, this isn’t exactly a revelation, nor an abrupt shift. Morgan Stanley has been moving into wealth management strategically for a while, and Goldman’s division already oversees more than $1 trillion in assets. Still, the banks’ latest commentary and moves in the past quarter make clear that they see this business, which produces a steady stream of fee-based income, as a way to leverage their reputation as titans of Wall Street.In Morgan Stanley’s earnings call on Thursday, Chief Executive Officer James Gorman specifically praised Dan Simkowitz for his work on building up the firm’s asset-management unit. And by all accounts it was well deserved, with the division’s revenue at the highest in five years. On the wealth-management side, Morgan Stanley posted $4.41 billion of revenue, which was 2% higher than last year and blew away analysts’ estimates for a 9% decline.Moreover, Morgan Stanley’s wealth-management division posted an impressive 28% profit margin. So impressive, in fact, that it drew more than one question from analysts about whether the bank can sustain that sort of momentum, including from Mike Mayo of Wells Fargo. Gorman insisted “it’s not like we are sitting back and saying we are really milking this.” Rather, “we’re playing for the long run.”At Goldman, Chief Executive Officer David Solomon on Tuesday highlighted its $750 million purchase of wealth manager United Capital, which was announced in May and represented one of Goldman’s biggest acquisitions in recent memory. Bloomberg News’s Sridhar Natarajan noted at the time that Solomon has made building out fee-based businesses a high priority so that shareholders can more easily estimate the bank’s growth and earnings.None of this is to say that Morgan Stanley and Goldman will abandon their positions as premier trading firms. But it’s notable to parse what Morgan Stanley Chief Financial Officer Jon Pruzan told Bloomberg News’s Sonali Basak in an interview. “We’re No. 1 in the world” in equities trading, he said, adding that “we would expect to maintain our market share in this type of environment.” He reiterated those comments during the analyst call.It’s certainly possible that volatility will resume, given that stock markets are hovering near all-time highs and global central banks are on the verge of further easing monetary policy. But framing expectations in terms of maintaining market share would seem to indicate that Pruzan expects further challenges for trading in the coming months and years. Ted Pick, who oversees all of Morgan Stanley’s traders and investment bankers, made some interesting comments in May about the equities business. He said he had led the division with “high levels of paranoia” because it felt like a couple of competitors were coming after the bank, either on price or looser risk requirements or something else. He said “that’s not a game we’re going to play.”Rather, as these second-quarter earnings make clear, Morgan Stanley is playing the long game. So is Goldman. When it comes to dealing with the fickle nature of financial markets, sometimes the most sound strategy is to play the hand you’re dealt.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.
Rise in interest income and lower costs support Morgan Stanley's (MS) Q2 earnings. However, weak trading and investment banking performance is on the downside.
(Bloomberg) -- Morgan Stanley shares swung to a gain of as much as 1.2% after declining during pre-market trading on Thursday, after the bank reported second-quarter results. Earnings per share and wealth management revenue beat estimates, while equities and fixed income trading revenue missed.Other big banks rose in early trading, too, as 10-year Treasury yields inched up a few basis points to 2.071%. The KBW Bank Index rose about 0.4%, led by U.S. Bancorp and trust banks State Street Corp. and BNY Mellon Corp. Bank of America Corp. rallied about 0.9%, while JPMorgan Chase & Co. and Citigroup Inc. both rose about 0.6%.Here’s a sample of analyst commentary:Evercore ISI, Glenn SchorrMorgan Stanley’s results were “stable but a little lethargic,” Schorr wrote in a note. “While it’s never fun to see double-digit declines in M&A, debt underwriting, FICC and equities, the stability and underlying growth of the franchise was still able to shine through as strong equity underwriting, investment management and wealth management trends led the way.”Schorr flagged positives including an approximate 2% drop in total expenses compared to last year; gains in institutional and wealth management loans of 5% and 6%, and an increase in total loans and commitments of 4%.Credit Suisse, Susan Roth KatzkeKatzke in a note saw pluses and minuses in Morgan Stanley’s results: Earnings per share topped estimates, with revenue upside from Tradeweb and investing gains, she said, though she also noted that the EPS beat was tax-rate driven. FICC fell short, while investment banking beat, and equities “was in line and similar to the peer group experience.”And, while the absolute dollar amount of expenses topped her forecast, firm-wide efficiency at 71.7% was better-than-expected.Wolfe, Steven Chubak“Overall a good result, but questions concerning the outlook may dampen optimism,” Chubak wrote in a note.Key highlights were better wealth margins, which topped 28% and exceeded the upper bound of the bank’s 26%-28% target range, along with “good expense discipline,” he said. Disappointments included weaker investment banking and trading results, which trailed peers, and a worse-than-expected 10% sequential decline in wealth management net interest income.Opimas CEO, Octavio MarenziMorgan Stanley beat expectations in the quarter only by “papering over weakness in its Investment Banking and Sales & Trading units with strong returns on Morgan Stanley’s principal investments,” Marenzi said via email.A continued reduction in expenses points to a “tightly run ship,” he said, but, “in coming quarters, the bank will need to bolster top-line growth in its core businesses. The bump from principal investments will be hard to replicate.”To contact the reporter on this story: Felice Maranz in New York at email@example.comTo contact the editors responsible for this story: Catherine Larkin at firstname.lastname@example.org, Morwenna ConiamFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Morgan Stanley (MS) delivered earnings and revenue surprises of 8.85% and 2.63%, respectively, for the quarter ended June 2019. Do the numbers hold clues to what lies ahead for the stock?
Morgan Stanley reported a 10% fall in quarterly profit on Thursday as low market volatility crimped trading and advisory revenue. The bank said earnings attributable to Morgan Stanley fell to $2.20 billion, or $1.23 per share, in the second quarter ended June 30, from $2.44 billion, or $1.30 per share, a year ago.
(Bloomberg) -- Morgan Stanley, the biggest stock-trading shop on Wall Street, is losing some of its lead.The company posted a 14% drop in equities-trading revenue, the steepest decline among major U.S. banks, as it cited lower client balances in its prime-brokerage business. While the firm had a surprise jump in wealth-management fees, the trading slump caused overall revenue to fall.Trade disputes and other geopolitical risks have weighed on stock clients, who’ve largely stood on the sidelines. Morgan Stanley last year elevated Ted Pick, who once led equities, to oversee all its traders and investment bankers, making him a candidate to one day become chief executive officer. He enjoyed breakthrough results last year, but said he’s led the business with “high levels of paranoia” this year because “there are one or two competitors” who are “coming after you.”Equities revenue slumped to $2.13 billion in the second quarter, compared with the $2.27 billion average estimate of analysts in a Bloomberg survey. That was still the highest total among banks, but comes after rival Goldman Sachs Group Inc. reported a surprise jump, booking $2.01 billion of stock-trading revenue in the period.“We’re No. 1 in the world, and we had a very strong quarter. Some of our competitors are coming from a weaker position from a year ago,” Chief Financial Officer Jon Pruzan said in an interview. “It looks like the wallet’s down coming off a strong first half last year, and we would expect to maintain our market share in this type of environment.”Morgan Stanley shares rose 0.6% to $44.05 at 9:33 a.m. in New York. They’ve gained 11% this year.Fixed-income trading also dropped more than rivals in the second quarter, slipping 18%, compared with analysts’ estimates of a 7% decline. Investment banking had a drop across deals and underwriting for debt that was worse than expected, while equity underwriting surpassed estimates. Pruzan said the deals pipeline is “healthy” and the firm is seeing more activity in leveraged finance.JPMorgan Chase & Co., a major rival in the equities business, earlier this week posted a 12% slump in that unit, but said separately that its unit that services hedge funds had balances reaching an all-time high. Prime brokerage has been a competitive arena for investment banks, and the industry faces major changes as Deutsche Bank AG exits the business. Pruzan said Morgan Stanley’s balances have climbed steadily since market turmoil in December caused clients to scale back.“Our balances are up, but it’s more of a subdued up than sort of the animal spirits you would generally characterize in this type of environment,” Pruzan said. “There’s not a lot of conviction in that space right now.”More on Morgan Stanley’s second-quarter results:Wealth management posted a surprise jump in revenue, and generated a 28% profit margin.Earnings per share of $1.23 beat analysts’ estimates of $1.15.Expenses across the firm fell to $3.65 billion from $3.9 billion a year earlier. Chief Executive Officer James Gorman said on a conference call Thursday that Morgan Stanley isn’t planning further expense-cut efforts. “I certainly don’t think it’s a time to panic,” he said.(Updates share price in sixth paragraph.)To contact the reporter on this story: Sonali Basak in New York at email@example.comTo contact the editors responsible for this story: Michael J. Moore at firstname.lastname@example.org, Daniel Taub, Dan ReichlFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Wall Street's main indexes were set for a flat open on Thursday as investors awaited more developments around trade, while Netflix posted a surprise drop in U.S. subscribers, kicking off earnings for the FAANG group of stocks on a sour note. Streaming pioneer Netflix Inc sank 10.4% premarket and was on pace to open at its lowest level since late-January, as it also missed targets for new subscribers overseas at a time when it has staked its future on global expansion. Trade worries have been weighing on markets for the last few weeks and the disappointing earnings so far have just amplified that pressure, Mark Luschini, chief investment strategist at Janney Montgomery Scott in Philadelphia, said.