Market Update: Banks Shine as Earnings Season Continues
Bank of America and Morgan Stanley Lead the Charge
The banking sector is off to a strong start this earnings season, with Bank of America (BAC) and Morgan Stanley (MS) reporting impressive Q4 results. Both banks saw significant increases in earnings and revenue, beating analyst expectations.
Bank of America’s Impressive Q4
Bank of America’s earnings more than doubled to 82 cents per share, from 35 cents last year. Revenue increased 15% to $25.3 billion, driven by global markets activity, fixed-rate asset repricing, and loan growth. Net interest income rose 3% to $14.4 billion, while the provision for credit losses increased to $1.5 billion from $1.1 billion last year. BAC stock ticked down slightly early Thursday but remains near a 48.08 buy point in a seven-week cup base.
Morgan Stanley’s Stellar Performance
Morgan Stanley’s earnings powered to $2.22 per share from 85 cents last year, clearing analyst estimates for $1.70. Revenue spiked 26% to $16.223 billion, with investment banking revenue increasing 25% to $1.64 billion. The provision for credit losses was bolstered to $115 million from $3 million last year. MS stock climbed 1.6% early Thursday, retaking support at its 50-day moving average and moving closer to a 136.24 buy point for an eight-week flat base.
Banks Rally on Strong Earnings
The banking sector rallied on Wednesday, with JPMorgan Chase (JPM) and Goldman Sachs (GS) leading the charge with strong beats. This positive trend is expected to continue as more banks report their Q4 earnings.
Market News: Dow Jones Falls on Jobless Claims and Retail Sales Data
The Dow Jones fell on Thursday, driven by weekly jobless claims and retail sales data. Meanwhile, Nvidia chipmaker TSMC surged on strong AI-related news. Stay up-to-date with the latest market news and updates on Twitter @IBD_Harrison.
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