Morgan Stanley Rises 2.84% as June CPI Drop Cuts July Fed Hike Odds to 16%
Updated
Updated · Benzinga · Jul 14
Morgan Stanley Rises 2.84% as June CPI Drop Cuts July Fed Hike Odds to 16%
3 articles · Updated · Benzinga · Jul 14
Summary
Morgan Stanley shares climbed 2.84% to $227.39 on Tuesday after June consumer prices fell 0.4% month over month, easing pressure on rate-sensitive financial stocks.
CME FedWatch data showed the implied odds of a July Fed rate increase collapsing to 16% from 40%, while bond yields retreated on the softer inflation report.
Morgan Stanley stands to benefit from lower rates through stronger investment banking activity, firmer equity markets and higher capital-markets revenue.
Wednesday's earnings report is the next test, with analysts expecting $2.95 a share on $19.64 billion in revenue after strong JPMorgan and Goldman results lifted sector sentiment.