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Coffee With Greta: More Big Bank Earnings


DJIA Futures: -114 (-0.3%)

SPX Futures: -8 (-0.2%)

NASDAQ Futures: -28 (-0.3%)

Good morning friends!

Futures are lower as Q4 earnings season continues. 

Let’s get right to it!

Morgan Stanley Jumps After Earnings Beat

Morgan Stanley (MS) shares are up 2.2% ahead of the open after beating Q4 expectations. 

Here’s how the bank’s results compared to analysts’ expectations: 

  • EPS: $1.26 vs $1.25 expected
  • Revenue: $12.75 billion vs $12.64 billion expected

Morgan Stanley’s wealth management division posted record net revenues of $6.63 billion, up 6% year over year. 

Chairman and CEO James Gorman said, “We reported solid fourth quarter results amidst a difficult market environment. Overall, 2022 was a strong year for the Firm as our clear strategy and balanced business model enabled us to deliver an ROTCE of 16% despite the complex macro backdrop.”

But Morgan Stanley’s investment banking saw a big slowdown as IPOs collapsed. 

Investment banking revenue came in at $1.25 billion, down 49% compared to a year ago. 

Goldman Sachs Falls On Earnings Miss

Goldman Sachs (GS) shares are falling 2.8% in premarket trade after missing Q4 expectations. 

Here’s how the investment bank’s results compared to analysts’ expectations: 

  • EPS: $3.32 vs $5.48 expected
  • Revenue: $10.59 billion vs $10.83 billion expected

It was the biggest profit miss since October 2011 as earnings plunged 66% year over year. 

Revenue was down 16% from a year ago. 

Operating expenses jumped 11% year over year to $8.09 billion, about $800 million higher than analysts were expecting. 

Activist Investor Takes Stake In Alibaba

Alibaba (BABA) shares are up 0.2% ahead of the open following reports activist investor Ryan Cohen bought a large stake in the company. 

The Wall Street Journal reported Cohen has built a stake in the Chinese e-commerce giant worth hundreds of millions of dollars.

He’s reportedly pushing the company to accelerate and expand its share-repurchase program. 

Alibaba had repurchased roughly $18 billion worth of its shares as of November 16. 

Cohen has reportedly told the board the current share buyback plan could be boosted by $20 billion, to roughly $60 billion. 

Housing Market In Focus This Week

The majority of economic data set to come out this week will be focused on the housing market. 

The National Association of Homebuilders releases its January sentiment index Wednesday morning at 10:00 a.m. ET. 

Then the Commerce Department reports housing starts and building permits for December at 8:30 a.m. ET on Thursday. 

And on Friday, the National Association of Realtors reports existing home sales at 10:00 a.m. ET. 

This week also includes more inflation data with the December PPI and retail sales both set to be released at 8:30 a.m. ET on Wednesday. 

Key Earnings After The Close

Here are the companies set to report earnings after the market close today: 

  • United Airlines (UAL)

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