Morgan Stanley Q1 Profit & Revenue Blow Away Expectations

Posted April 20, 2017

Steep losses for IBM are dragging the Dow Jones industrial average lower.

The Standard & Poor's 500 index gained 9 points, or 0.4 percent, to 2,351 as of 10:05 a.m. Hong Kong's Hang Seng index climbed 0.3 percent to 23,905.35 and Australia's S&P ASX 200 edged 0.1 percent higher to 5,812.30.

Zacks Investment Research also rated the stock with a value of 2.25. It was the second day in a row that a weak report from a single company pulled the Dow sharply lower, as Goldman Sachs did on Tuesday.

The results were well ahead of analyst estimates. Brent crude, used to price global oils, jumped 39 cents to $53.32 a barrel.

Morgan Stanley MS.N reported a 74 percent jump in quarterly profit on Wednesday, topping analysts' estimates, as revenue from bond trading almost doubled following interest rate hikes by the Federal Reserve.

And Morgan Stanley wasn't the only major bank to outperform Goldman Sachs in this segment.

Crystal Palace inflict damaging defeat on Arsenal
Arsenal Supporters' Trust announced that the club have said that no deal is on the table, despite reports to the contrary. We had comments as well and we did get it independently looked at by a company who identified respect for Arsene Wenger.

Morgan Stanley's shares were up 2.8 percent at $42.38 in early morning trades on Wednesday. Elsewhere, Charles Schwab rose 71 cents, or 1.9 percent, to $38.62 and Prudential climbed $1.42, or 1.4 percent, to $104.99. The Shanghai Composite index lost 0.2 percent to 3,164.78 and Southeast Asian benchmarks were mixed. Morgan Stanley posted earnings of $1 per share on $9.7 billion in revenue, compared to the consensus estimates of 89 cents per share and $9.3 billion. IBM stock fell $8.76, or 5.2 percent, to $161.29. The yield on the 10-year Treasury note rose to 2.21 percent from 2.17 percent. Bank of America Corp., by contrast, posted stronger trading revenue that helped fuel a 40 percent surge in first-quarter profit. The auto and industrial parts distributor raised its profit forecast for the year, although it acknowledged its USA business has been weak. Its Target Price was fixed at 47.24 at an IPO Date of 2/23/1993. It fell $1.96, or 3.6 percent, to $52.93 per barrel in London. Ford and General Motors both rose about 1 percent and Tesla gained nearly 2 percent. The stock was sold at an average price of $43.82, for a total transaction of $7,976,423.14. That hurt high-dividend payers including utilities and household goods companies. Its stock gave up 83 cents, or 1.8 percent, to $46.51.

If the stocks above spark your interest, wait until you look into companies primed to make substantial gains from Washington's changing course. In terms of volatility, it has a beta coefficient of 1.84 and technical analysis volatility indicator called Average True Range or ATR around 0.96. Big (but shrinking?) Blue missed badly on both top and bottom lines: $2.38 per share on $18.16 billion were a far cry from the $3.15 on $19.87 billion expected.

Meanwhile, oil prices were a touch higher, with West Texas Intermediate and Brent crude up 0.4% to $52.61 a barrel and $55.12, respectively. Brent crude, used to price global oils, fell 28 cents to $54.61 per barrel in London.

It was up 0.4% against the yen at 108.90. The euro fell to $1.0714 from $1.0731.

Global stock markets were mixed on Wednesday as investors gauged the impact from British Prime Minister Theresa May's surprise decision to hold early elections.