Morgan Stanley Technical Analysis - Morgan Stanley Trading: 2022-01-20

Morgan Stanley is a global investment bank and financial services company with market capitalization at $176.62 billion. The company is active in three primary segments: institutional securities, wealth management, and investment management. The stock is trading at P/E ratio (Trailing Twelve Months) of 12.51 currently, the company earned $58.27 billion revenue (ttm) and Return on Equity (ttm) of 15.05%. The Federal Reserve has signaled it is planning at least three quarter-point interest rate increases in 2022 and reduction of its balance sheet. The next Fed meeting is scheduled for January 25-26. The tightening of monetary policy involving higher interest rates is beneficial for financial companies which make money on providing loans. Morgan Stanley posted better than expected results in third quarter: total revenue increased 26% over year to $14.8 billion, while total assets increased 16% to $4.6 trillion between December 2020 and September 2021. However Morgan Stanley stock lost 4.8% Tuesday after Goldman Sachs missed quarterly profit expectations and plunged 7%, apparently traders expected higher Morgan Stanley expenses also would hurt its fourth quarter earnings. Nevertheless, the company surprised by reporting overall quarterly revenue of $14.5 billion compared with $13.6 billion a year ago– and compensation expense was roughly flat during the quarter compared with a year ago, while for the year net income surged 37% to $15 billion and revenue jumped 23% to nearly $60 billion. The stock closed 1.67% higher on the day. However the chart analysis shows the current setup is bearish for Morgan Stanley stock.