Summary:
– The first half of 2023 has witnessed huge advances in the global market indices, driven by a few key large tech companies, despite an economic downturn and rising interest rates.
– Q2 earnings by reports by Morgan Stanley, Bank of America
– Indices mixed trade: S&P up 0.33%, Dow up 1.02% & Nasdaq is down by 0.10%
Bank of America (BAC.N) posted a 20% surge in second-quarter profit, while Morgan Stanley (MS.N) beat analysts’ expectations for quarterly results, sending their shares up between 4% and 6%.
“Morgan Stanley reports second quarter 2023 net revenues of $13.5 billion, net income of $2.2 billion, EPS of $1.24 and ROTCE of 12.1%.
Institutional Securities net revenues of $5.7 billion reflect continued muted activity in Investment Banking and declines in Equity and Fixed Income driven by lower client activity in a less favorable market environment compared to a year ago.
Wealth Management delivered strong net new client assets of $90 billion and record net revenues of $6.7 billion, which reflect higher net interest income and the positive impact of DCP.
Investment Management results reflect net revenues of $1.3 billion on AUM of $1.4 trillion and positive net flows.”
“Bank of America’s net income was up 19% compared to the year-earlier period to $7.4 billion. Revenue rose 11% to $25.2 billion.
“We continue to see a healthy US economy that is growing at a slower pace, with a resilient job market,” said CEO Brian Moynihan.z”
Adithi Pai 
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