Morgan Stanley Q2 Earnings Beat Estimates but Banking Weakness Drags Shares

Morgan Stanley's second-quarter earnings outperformed expectations, with profits rising 15% to $3.39 billion, driven by robust trading and wealth management results. Earnings per share reached $2.13, surpassing the consensus estimate of $1.93. Despite these gains, shares dipped 1.27% to close at $139.79, reflecting investor concerns over a 5% decline in investment banking fees to $1.54 billion.

Equity underwriting surged 42%, but this failed to offset weaknesses in advisory fees and non-investment grade underwriting. Institutional securities pre-tax income stood at $2.11 billion, with net revenues climbing 9% to $7.64 billion. Fixed income trading revenue ROSE 9% to $2.18 billion, exceeding forecasts. The bank's assets under management grew to $8.2 trillion, yet Wall Street remains wary of persistent headwinds in investment banking.