Morgan Stanley profit rises on equity trading strength

Morgan Stanley reported Q3 revenue growth, beating estimates, driven by record asset-management revenues and higher net interest income. Investment Management segment revenue fell 12% year-over-year, with asset management fees rising but performance-based income declining. Retail sentiment on Stocktwits is 'Extremely Bullish'. MS shares are up over 3% year-to-date.

U.S. stocks fell Wednesday after hotter-than-expected inflation data. The S&P 500 declined, and Treasury yields rose. JPMorgan, Goldman Sachs, Citigroup, and Wells Fargo reported earnings Tuesday. Bank of America (BAC) was fined $1.2B by regulators. Analysts noted focus on forward guidance amid rate uncertainty.

Morgan Stanley (NYSE:MS) reported Q3 revenue of $20.3B, up 12%, with net income rising 6% to $4.9B. Equity trading surged 41%, while fixed-income revenue fell 7%. Wealth management set a record with $9.1B in revenue, up 10%. Shares dropped 2.8% premarket.

Bank of America reported lower 3Q profit due to a $1.2B regulatory fine, with adjusted earnings of $1.08/share, missing estimates. Shares fell 4.3%. Morgan Stanley's 3Q profit and revenue rose, beating expectations, driven by equity revenue and wealth management growth.

Bank of America reported a profit drop, Morgan Stanley and Citigroup beat estimates, Wells Fargo missed revenue targets, JPMorgan missed earnings for the first time in nearly three years, and Goldman Sachs exceeded expectations. Executives from JPMorgan and Goldman Sachs suggest IPO delays are temporary, with a strong pipeline of deals. Renaissance Capital expects 2023 to surpass last year's IPO count in deals, though not in proceeds.

Morgan Stanley reported Q3 earnings and revenue above expectations, driven by growth in equity and wealth management. Net interest income increased, while fixed income and investment management saw declines. The results exceeded analyst forecasts.