Morgan Stanley (NYSE: MS)
Morgan Stanley Earnings
Shares of Morgan Stanley (MS) spiked up in the premarket session after they released their Q4 earnings that beat analyst expectations and sent shares to highs of $27.20 before coming back down and opening the day at $26.83. MS reported 43 cents per share on $7.7 billion in revenue while analysts were looking for 33 cents per shares on $7.6 billion in revenue. MS answered the losses they incurred through their trading department by slashing 1200 trading jobs to help manage expenses and improve their bottom line. Currently analysts have an average price target of $37.08.
CEO Comments
“We enter 2016 with a continued focus on managing expenses across the firm and driving up returns for our shareholders,” Chief Executive James Gorman said in a statement.
MS Technicals
MS gapped up in the premarket on higher than normal volume after earnings beat analyst expectations with shares opening the day at $26.83, up just over 3% from yesterdays close. However, market weakness weighed on stocks again and shares immediately sold off eventually to intraday lows of $25.76 before bouncing back and closing the day at $26.26. It looks like we could be in a for a little bit of a bounce off the $26 level so we’ll have to keep an eye on how price action behaves going forward and the overall market conditions. I like the upside potential here but with the recent market weakness we will need to make sure we have stops in place.
Looking back on the daily chart you can see that MS had a rough end to 2015 and it didn’t get any better to start off 2016. Shares are down over 15% as of yesterdays close but with this earnings beat we should see some renewed interest in this stock. Support will be met at $25.50 and $26 levels with resistance coming in at $27, $28 and $28.80 price ranges. Getting back over $30 level will be huge and something we should keep an eye on as we potentially head back towards the 200-day moving average currently sitting at $35.48.
Company Profile
Morgan Stanley engages in the provision of investment banking products and services to its clients and customers including corporations, governments, financial institutions, and individuals. It operates through the following segments: Institutional Securities, Wealth Management, and Investment Management. The Institutional Services segment provides financial advisory, capital-raising services, and related financing services on behalf of institutional investors. The Wealth Management segment offers brokerage and investment advisory services covering various types of investments, including equities, options, futures, foreign currencies, precious metals, fixed-income securities, mutual funds, structured products, alternative investments, unit investment trusts, managed futures, separately managed accounts, and mutual fund asset allocation programs. The Investment Management segment provides equity, fixed income, alternative investments, real estate, and merchant banking strategies. The company was founded by Harold Stanley and Henry S. Morgan on September 16, 1935 and is headquartered in New York, NY.
