Morgan Stanley NYSE: MS reported record second-quarter 2026 results, with executives citing strong client activity across institutional securities, wealth management and investment management, as well as continued benefits from the firm's integrated business model.
Morgan Stanley delivered blowout Q2 earnings, driven by wealth management growth, strong investment banking, and robust capital returns. Recurring fee revenue from wealth management and rising AUM underpin MS's resilient results, with further upside expected in Q3 due to market appreciation. Investment banking and trading benefited from a favorable environment, but trading revenues are unlikely to remain at current extraordinary levels.
Morgan Stanley has identified three stocks that could outperform as the second-quarter earnings season gets underway. The Wall Street bank highlighted GE Vernova (NYSE: GEV), Lam Research (NASDAQ: LRCX), and United Airlines (NASDAQ: UAL) among its top picks, citing expectations that they will deliver strong quarterly earnings.
Here are five key things investors need to know to start the trading day.
The artificial intelligence boom has never been cheap, but the price of staying at the cutting edge is climbing even faster than many investors expected.
Morgan Stanley reports first-quarter earnings before the bell Wednesday. Rivals JPMorgan Chase and Goldman Sachs reported earnings Tuesday that showed higher trading and investment banking revenue.
JP Morgan has run the numbers on a renewed bid for Rightmove PLC (LSE:RMV) by REA Group and concluded the deal would deliver little for the Australian buyer's shareholders. The bank, in a note by analysts Marcus Diebel and Bob Chen, estimates a revived takeover would generate only around 4% earnings per share accretion, an outcome it does not consider attractive on a risk and reward basis.
With U.S. stock futures trading higher this morning on Wednesday, some of the stocks that may grab investor focus today are as follows:
At current prices: JPMorgan Chase (NYSE:JPM | JPM Price Prediction) at $336.47 looks fully valued, Morgan Stanley (NYSE:MS) at $222.28 appears stretched, and Bank of America (NYSE:BAC) at $59.67 screens as the most attractive on valuation.
MS' Q2 earnings may get a lift from stronger trading, higher IB fees and improving net interest income.
Meta stock has been boosted by signs it is becoming more competitive in AI but JP Morgan analysts aren't convinced yet.
JP Morgan has placed Prudential PLC (LSE:PRU) on positive catalyst watch ahead of its first-half results, expecting reassurance on the impact of a Chinese regulatory change. The broker reiterated its 'overweight' rating on the insurer ahead of results due on 26 August.