New York, Jan 14, 2026, 19:05 EST — After-hours
- MS shares dropped roughly 1% on Wednesday, underperforming several other banks
- Results will drop before Thursday’s open, as investors zero in on trading volumes, deal fees, and wealth flows
- Sector sentiment shifted into a choppy pattern amid bank earnings and policy uncertainties hitting the tape
Morgan Stanley (MS.N) shares dropped 1.1% to close Wednesday at $180.78, then held steady in after-hours trading ahead of the bank’s quarterly earnings report set for Thursday morning.
The report is crucial as Wall Street seeks to determine if the boost from increased market activity and revived deal flow is widespread or limited to select big players. For Morgan Stanley, the focus boils down to two areas: trading and wealth management.
Investors are reevaluating the bank sector after a rally that’s tightened margins for error. U.S. stocks dipped once more on Wednesday, pressured by a blend of uneven big-bank earnings and new economic figures. (Reuters)
Bank of America topped profit forecasts earlier, driven by robust trading and record net interest income (NII)—the gap between loan earnings and deposit costs—but its stock still dropped. “These stocks had a strong run up into these reports,” said Jake Johnston, deputy chief investment officer at Advisors Asset Management. (Reuters)
Wells Fargo fell short of quarterly profit estimates, weighed down by $612 million in severance charges. Its CFO cautioned that a planned 10% cap on credit card interest rates might lead banks to tighten lending. (Reuters)
Morgan Stanley and other firms with heavy trading focus are zeroing in on prime brokerage — the financing and trading services tailored for hedge funds — after banks reported robust client activity late last year. Rachid Alaoui, JPMorgan’s global equities trading chief, called it “a favorable trading environment” that allowed clients to take on more leverage “without extreme volatility.” Meanwhile, Citi CEO Jane Fraser highlighted growth in prime during her post-earnings call. (Reuters)
JPMorgan’s results on Tuesday highlighted the mixed signals. The bank topped forecasts thanks to a trading boost, yet shares dropped after investment banking revenue fell short. CEO Jamie Dimon described the U.S. economy as “resilient.” (Reuters)
Morgan Stanley plans to release its fourth-quarter and full-year 2025 earnings around 7:30 a.m. ET on Thursday, followed by a conference call at 8:30 a.m. ET, the company announced. (Morgan Stanley)
Investors will zero in on whether Morgan Stanley’s markets unit matched the mood set by rivals and what the bank has to say about advisory and underwriting fees heading into 2026. Early signs from wealth management will also draw attention, particularly if volatile equity markets start affecting client behavior.
The setup has its risks. If trading disappoints, deal updates fall short, or costs rise, the stock could take a swift hit—especially as investors remain jittery over policy and regulatory news in the sector.
Thursday morning’s results and management call will be the next big catalyst. The bank’s guidance, along with any changes in tone on deal pipelines and client risk appetite, will provide the first clear signal for MS shares heading into next week.
