MSMSMorgan Stanley
$196.67
24h
+0.14%
Yiannis ZourmpanosYiannis Zourmpanos
19 Jul, 16:03

Morgan Stanley benefited from investment banking revival

Bullish-8.74%

AI Summary

The author argues that Q2 bank earnings show capital markets are reopening, with dealmaking driving strong results for investment banks and a bullish outlook for financial sector ETFs.

The quiet winner of Q2 bank earnings wasn’t lending. It was dealmaking. $GS crushed with a 48.8% EPS surprise and 26.6% revenue beat, while $MS delivered 23.1% EPS upside, helped by the revival in investment banking and underwriting fees from the SpaceX IPO. $JPM and $BAC still showed credit strength, but the real signal is this: capital markets are reopening. That’s usually bullish for risk assets, IPOs and the broader $XLF breakout.

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