Morgan Stanley Stock Climbs: What's Happening Today?
Morgan Stanley (NYSE: MS ) shares are climbing Tuesday as a cooler-than-expected inflation reading slashed the odds of a near-term Fed rate hike and strong quarterly results from Wall Street peers set a constructive tone heading into the bank’s own earnings report tomorrow. Morgan Stanley stock is gaining positive traction. Why is MS stock advancing? CPI Surprise Takes a July Rate Hike Off the Table The spark behind Tuesday’s move was a June price report that caught markets off guard. Consumer prices fell 0.4% from the prior month bringing the headline annual rate to 3.5% while the core reading, which sets aside volatile food and energy costs, came in flat on a monthly basis. That left the year-over-year core figure at 2.6%. Bond yields retreated on the news and the probability of a rate increase at the Fed’s July gathering collapsed from 40% to just 16%, according t...
Morgan Stanley (NYSE: MS ) shares are climbing Tuesday as a cooler-than-expected inflation reading slashed the odds of a near-term Fed rate hike and strong quarterly results from Wall Street peers set a constructive tone heading into the bank’s own earnings report tomorrow.
Morgan Stanley stock is gaining positive traction.
Why is MS stock advancing? CPI Surprise Takes a July Rate Hike Off the Table The spark behind Tuesday’s move was a June price report that caught markets off guard.
Consumer prices fell 0.4% from the prior month bringing the headline annual rate to 3.5% while the core reading, which sets aside volatile food and energy costs, came in flat on a monthly basis.
That left the year-over-year core figure at 2.6%.
Bond yields retreated on the news and the probability of a rate increase at the Fed’s July gathering collapsed from 40% to just 16%, according to CME FedWatch data, giving rate-sensitive financial stocks room to breathe.
Morgan Stanley benefits significantly from lower interest rates through increased investment banking activity, stronger equity markets and a boost to overall capital markets revenue.
JPMorgan and Goldman Results Lift Sentiment Across the Sector Peer earnings are adding another layer of support.
JP Morgan Chase & Co (NYSE: JPM ) reported net income of $16.9 billion with earnings per share of $6.14, driven by a 15% year-over-year revenue increase fueled by markets revenue and higher fees.
The bank raised its quarterly dividend to $1.65 per share, effective for the third quarter and revised its full-year net interest income outlook to approximately $105.50 billion.
Goldman Sachs Group Inc (NYSE: GS ) delivered an even bigger beat, posting earnings of $20.98 per share against a consensus estimate of $14.40 on net revenue of $20.34 billion, a 39% jump year-over-year that crushed the $16.13 billion estimate.
Global Banking and Markets drove the outperformance with net interest income rising to $3.95 billion from $3.10 billion a year earlier.
Morgan Stanley Reports Wednesday Morgan Stanley steps into the spotlight Wednesday morning with analysts projecting earnings of $2.95 per share on revenue of $19.64 billion.
The strong results from JPMorgan and Goldman have raised the bar, but also lifted expectations that investment banking and trading tailwinds benefiting the broader sector extended into Morgan Stanley’s quarter as well.
MS Shares Are Climbing MS Price Action: Morgan Stanley shares were up 2.84% at $227.39 at the time of publication on Tuesday, according to Pro.
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