Morgan Stanley surprised its shareholders
Trading volume was 1.8 times the 20-day average
The Wall Street giants; investment banks such as Morgan Stanley, surprised its shareholders yesterday by thrashing the street estimates. The fear was these banks will come under pressure due to an increase in the interest rate. But the numbers clearly confirmed that the banks are praising higher volatility which is improving their top line figures. So far this week, the earnings has been better than expected.
The company had a profit of $1.25 a share on a comparable basis for the latest quarter, versus the estimate for net income of $1.11, and it had sales of $10.6 billion, versus $10.1 billion. The company reported on July 18.
Trading volume was 1.8 times the 20-day average. Morgan Stanley’s move compares with the 1 percent rise in the Russell 3000 Financial Services Index and the 0.2 percent gain in the S&P 500 Index.
In terms of technical analysis, the price has broken out of the downward channel. The price needs to break its 50, 100 and 200 SMA to confirm the uptrend on a daily time frame. The suppost is at 46.26 and the resistance is at 52.63.
