Morgan Stanley profit rises on equity trading strength
Summary
Morgan Stanley has reported an increase in its overall profit. This financial growth was primarily driven by strong performance in the equity trading sector.
Morgan Stanley reported third-quarter earnings of $3.03 per share on revenue of $20.34 billion, up 12% from a year earlier, beating analyst estimates on both lines as equities trading revenue came in well above expectations.
Sources: CNBC · Quartz · Grafa
Our Take
This was a clean beat. EPS of $3.03 topped estimates around $2.91 to $2.94, and revenue of $20.34 billion beat expectations near $19.95 billion. Equities trading did the heavy lifting at $5.8 billion, roughly $900 million above what analysts expected, a sign that 2026's high-volume, volatile market is paying off for trading desks.
The less flashy part matters most long term: Wealth Management posted record net revenue of $9.07 billion and $232 billion in net new assets. That gives Morgan Stanley a steadier base when trading cools off.
The contrast with Bank of America is telling. This quarter, the banks most leveraged to markets are winning, while the lending-heavy names lag. Just keep in mind that trading revenue is cyclical, so don't extrapolate one blowout quarter forever.
Levels for Wednesday:
- MS closed Tuesday at $186.64 and was indicated slightly lower, near $185.50, in pre-market trading despite the beat.
- Resistance: Tuesday's high at $193.30. A move through it with volume would confirm buyers are rewarding the trading blowout.
- Support: Tuesday's low near $186.35, then the $180 area.
The tell: a beat this size that can't hold green shows how much good news was already priced in after the run.
Opinion of Tech & Money Press. Not financial advice.
Source: Read the full story at Stock Market News