Morgan Stanley release their earnings results today and how will the stock respond?
Rising interest rates are generally a positive environment for financial stock as higher rates usually mean higher profit margins for bank loans charges.
This earnings seasons there is a focus on bank’s Net Interest Income reports. This is the difference between what the banks’s revenue from interest bearing assets are and the cost of servicing these assets. Investors are wanting to make sure that debt default expectations don’t rise rapidly to assess how healthy bank’s earnings really are.
What are the seasonals like for Morgan Stanley? Well they are quite mixed. At first sight they look good, but when you take out an outlier result post 2019 you see some pretty indifferent results.
So, does this man Morgan Stanley is worth passing over this earnings season? Or will the actual results reveal some hidden value?
Major Trade Risks:
The main risk here is that Morgan Stanley surprise with some good results that causes investors to buy into the stock.
Don’t just trade it, but Seasonax it