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Friday October 15, 2021

// October 15th, 2021 // Comments Off on Friday October 15, 2021 // Daily News

TGIF

ECONOMY

Retail sales unexpectedly gain in September as consumers keep spending

PUBLISHED FRI, OCT 15 20218:35 AM

Consumers spent at a much faster pace than expected in September, defying expectations for a pullback amid pervasive supply chain problems, the Census Bureau reported Friday.WATCH NOWVIDEO02:14September retail sales rise 0.7% despite expected decline

Retail sales for the month increased 0.7%, against the Dow Jones estimate for a decline of 0.2%. Excluding auto-related sales, the number rose 0.8%, better than the 0.5% forecast.

Compared to a year ago, sales were up 13.9% on the headline number and 15.6% ex-autos.

The increase came during a month when the government ended the enhanced benefits it had been providing during the Covid-19 pandemic and against forecasts that growth would slow in the third quarter due to the delta spread and a perceived pullback in consumer activity.

But with coronavirus cases continuing to drop, spending accelerated.

“Students heading back to school and workers returning to the office are likely the catalysts for the increased retail sales,” said Natalie Kotylar, national leader of BDO’s retail and consumer products practice. “People who are back to working in a downtown office may be taking more shopping trips on their lunch break or after work. With school back in session and many teens vaccinated, parents may also be more comfortable allowing their teens to take shopping trips to the mall.”

Sporting goods, music and book stores led the way with a 3.7% increase. General merchandise increased 2% while miscellaneous retailers rose 1.8%. As gas prices pushed higher, spending at fuel stations jumped 1.8%, for a 38.2% surge over the past year.

Food and beverage spending increased 0.7%, though restaurants and bars saw a gain of just 0.3%, a sign that fears over the virus may have kept some people at home. Food and drinking establishment spending is up 29.5% over the past year.

Thursday October 14, 2021

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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.