Morgan Stanley earnings miss amid the coronavirus outbreak
Robust trading results could deteriorate in the future as the crisis wears on
Stocks impacted: Morgan Stanley (MS)
Morgan Stanley reported weaker-than-expected first-quarter earnings that fell to $1.01 a share with revenue declining 8% to $9.49 billion. At the same time, fixed-income trading revenue jumped 29% to $2.2 billion, and equity trading climbed 20% to $2.4 billion. Revenue wealth management fell 8% to $4.04 billion. Revenue in the investment management division fell 14% to $692 million. The bank also warned robust trading results that have partly offset the negative start of 2020 due to a surge in volatility, could deteriorate in the future as the crisis wears on. As a reminder, earlier this week, other large US banks reported sharp declines in profit tied to the coronavirus pandemic. Morgan Stanley shares that are down 24% from the beginning of the year, dipped in a knee jerk reaction to the release but trimmed intraday losses to just 0.10% by the end of the day.
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