Coffee With Greta: Consumer Miss
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DJIA Futures: -20 (-0.1%)
SPX Futures: -5 (-0.1%)
NASDAQ Futures: -32 (-0.2%)
Good morning friends!
Futures are flat but lower as traders digest the latest economic data and more big bank earnings.
Let’s get right to it!
Retail Sales Disappoint
Retail sales rose less than expected in June.
The Commerce Department reported retail sales rose 0.2% to $689.5 billion vs expectations for a 0.5% increase.
Spending rose 2% at miscellaneous retailers, 1.9% online, 1.4% at furniture stores, and 1.1% at electronics stores.
Department stores saw the largest drop with spending down 2.4%, receipts fell 1.4% at gas stations, and 1% at sporting goods stores.
Excluding autos, retail sales rose 0.2% vs 0.3% expected.
Morgan Stanley Slips Despite Earnings Beat
Morgan Stanley (MS) shares are slipping 0.2% ahead of the open despite beating Q2 expectations.
Here’s how the investment bank’s results compared to analysts’ estimates:
- EPS: $1.24 vs $1.15 expected
- Revenue: $13.46 billion vs $13.08 billion expected
The bank’s profit dropped 13% year over year while revenue rose 2%.
Morgan Stanley’s wealth management revenue jumped 15% from a year ago to a record $6.66 billion vs $6.5 billion expected.
The CEO said, “The firm delivered solid results in a challenging market environment. The quarter started with macroeconomic uncertainties and subdued client activity, but ended with a more constructive tone.”
But the bank’s Wall Street division saw weaker results.
Institutional securities revenue fell 8 to $5.65 billion, Equities trading revenue came in at $2.55 billion in revenue vs $2.37 billion expected, and fixed income revenue of $1.72 billion missed the $1.99 billion estimate.
Bank of America Tops Q2 Expectations
Bank of America (BAC) shares are down 0.8% in premarket trade despite reporting better-than-expected Q2 earnings and revenue.
Here’s how the consumer bank’s results compared to analysts’ estimates:
- EPS: $0.88 vs $0.84 expected
- Revenue: $25.33 billion vs $25.05 billion expected
Earnings were up 19% from a year ago while revenue rose 11%.
That revenue increase was fueled by a 14% jump in net interest income.
The CEO said, “We continue to see a healthy U.S. economy that is growing at a slower pace, with a resilient job market. Continued organic client growth and client activity across our businesses complemented beneficial impacts of higher interest rates.”
Bank of America’s Wall Street division also helped boost revenue.
Fixed income trading revenue jumped 18% to $2.8 billion vs $2.77 billion expected while equities trading slipped 2% to $1.6 billion vs $1.48 billion expected.