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In the Premarket trading session on Thursday, Morgan Stanley’s stock was trading at 56.20- higher by 6.23% as compared to its previous close.
The bank reported its earnings for the fourth quarter before the market opened on Thursday. Morgan Stanley generated an EPS of $1.30 for the quarter 31st December. The EPS was above the consensus estimates of 99 cents. Overall net revenue climbed 27% to $10.86 billion for the fourth quarter. The quarterly revenue was above the market expectation of $9.71 billion.
Morgan Stanley’s each of the three main businesses produced better-than-the expected revenue. The bank’s returns on equity for the full year 2019, dropped to 11.7% from 11.8%, a year earlier. Return on equity, however, met Morgan Stanley’s earlier target of between 10% and 13%. Wealth management posted a pretax profit margin of 27.2% for the full year. It was also within the bank’s target of 26%-28% for the year. In the fourth quarter, Morgan Stanley was affected by severance costs of $172 million related to a 2% decline in its workforce globally.
On the technical front, the current price is above the MA5 and the MA20. The current price is above the upper band of the Bollinger Bands and is heading upwards. The stock is expected to trade higher today.
TRADE SUGGESTION- STOP BUY AT 56.60 TAKE PROFIT AT 57.02 STOP LOSS AT 56.40