Thursday October 14, 2021

// October 14th, 2021 // Comments Off on Thursday October 14, 2021 // Daily News

Morgan Stanley beats estimates on record investment banking and asset management results

• Here are the numbers: Earnings of $1.98 a share vs the $1.68 a share estimate of analysts surveyed Refinitiv.
• Revenue: $14.75 billion vs. the $14 billion estimate.
• Shares of the bank climbed 2.2% in premarket trading

Morgan Stanley on Thursday topped expectations for third-quarter profit and revenue as the firm posted record results in investment banking and asset management.

Here are the numbers:

• Earnings: $1.98 a share vs the $1.68 a share estimate of analysts surveyed Refinitiv
• Revenue: $14.75 billion vs. the $14 billion estimate

“The Firm delivered another very strong quarter, with robust revenues and improved efficiency,” CEO James Gorman said in the release. “We had standout performance of our integrated investment bank and record net new assets of $135 billion in wealth management.”

Shares of the bank climbed 2.2% in premarket trading.

Revenue and net income jumped more than 25% from a year ago, aided by Gorman’s acquisitions of E-Trade and Eaton Vance, which bulked up the firms’ wealth and asset management divisions.

While rival banks have reported a slowdown in third-quarter fixed income trading revenue, Morgan Stanley’s strength has traditionally been in its equities franchise, the biggest in the world.

Equities trading revenue jumped 24% from a year earlier to $2.88 billion, exceeding the estimate by more than $500 million. Fixed income revenue dropped 16% to $1.64 billion, edging out the $1.53 billion estimate.

Another area that has flourished is investment banking, propelled by robust mergers and IPO activity, and Morgan Stanley is a top player there as well. Rival advisor JPMorgan Chase posted record investment banking fees in the third quarter.

Morgan Stanley’s investment banking franchise delivered in the quarter, posting a 67% increase in revenue to a record $2.85 billion, exceeding the StreetAccount estimate by more than $600 million, helped by strong mergers advisory fees.

Shares of the bank have climbed 44% this year before Thursday, exceeding the 36% rise of the KBW Bank Index.

Wednesday October 13, 2021

// October 13th, 2021 // Comments Off on Wednesday October 13, 2021 // Daily News

Welcome to Joe Biden’s America

Consumer prices rise more than expected as energy costs surge

PUBLISHED WED, OCT 13 2021

• Consumer prices overall rose 0.4% in September, pushing the year-over-year gain to 5.4%.
• Excluding food and energy, the gain was just 0.2% and 4%, respectively.
• Energy and food prices climbed, while used car prices, which had been a central story in the inflation picture this year, declined.

WATCH NOWVIDEO03:52September’s consumer price index up 0.4% vs. 0.3% estimate

Consumer prices increased slightly more than expected in September as food and energy price rises offset declines in used cars, the Labor Department reported Wednesday.

The consumer price index for all items rose 0.4% for the month, compared with the 0.3% Dow Jones estimate. On a year-over-year basis, prices increased 5.4% versus the estimate for 5.3% and the highest since January 1991.

However, excluding volatile food and energy prices, the CPI increased 0.2% on the month and 4% year over year, against respective estimates for 0.3% and 4%.

Dow futures were slightly positive following the news while government bond yields were mostly higher.

Gasoline prices rose another 1.2% for the month, bringing the annual increase to 42.1%. Fuel oil shot up 3.9%, for a 42.6% year over year surge.

Food prices also showed notable gains for the month, with food at home rising 1.2%. Meat prices rose 3.3% just in September and increased 12.6% year over year.

“Food and energy are more variable, but that’s where the problem is,” said Bob Doll, chief investment officer at Crossmark Global Investments. “Hopefully, we start solving our supply shortage problem. But when the dust settles, inflation is not going back to zero to 2 [percent] where it was for the last decade.”

Used car prices, which have been at the center of much of the inflation pressures in recent months, fell 0.7% for the month, pulling the 12-month increase down to 24.4%. However, the continued rise in prices even with the drop in vehicle costs could lend credence to the notion that inflation is more persistent than policymakers think.

Airline fares tumbled 6.4% for the month after falling 9.1% in July.

Shelter prices, which make up about a third of the CPI, increased 0.4% for the month and are up 3.2% for the 12-month period. Owners’ equivalent rent or how much an owner of a property would have to pay to rent it, increased 0.4% as well, its largest monthly gain since June 2006.