New York, Jan 16, 2026, 19:48 ET — Trading after hours.
- Morgan Stanley shares closed Friday down 1.1% at $189.09, slipping from an intraday high of $192.69.
- The bank reported record revenue for 2025 along with a steep rise in investment-banking fees, though executives warned of a challenging start to 2026.
- Focus turns to whether deal activity can sustain momentum and the Fed’s meeting on Jan. 27-28.
Morgan Stanley shares dipped 1.1%, ending Friday at $189.09, despite the firm posting record annual revenue. CEO Ted Pick flagged “geopolitics are front and center” amid a “complicated” environment. During the session, shares fluctuated between $188.96 and $192.69. (Wealth Management)
The results come at a tricky time for major U.S. banks: investors expect dealmaking and equity trading to pick up and hold through 2026, following a stronger 2025. Much of this hope hinges on IPO and M&A pipelines turning into real activity, not just talk. (Reuters)
Morgan Stanley stands out as a cleaner play on the theme, thanks to its sizable wealth management business paired with the investment bank. When one segment weakens, the other often picks up the slack. At least, that’s the idea.
Morgan Stanley reported fourth-quarter net revenues of $17.9 billion, with profit attributable to shareholders hitting $4.4 billion, or $2.68 per share. For the full year 2025, the firm posted record net revenues of $70.6 billion and earnings of $10.21 per share. Investment-banking revenue surged 47% in the quarter to $2.41 billion, while wealth-management revenue climbed 13% to $8.43 billion. Pick noted the firm “delivered outstanding performance in 2025,” as total client assets across wealth and investment management rose to $9.3 trillion, buoyed by $356.3 billion in net new assets within wealth. (Morgan Stanley)
The stock jumped the day after earnings, closing Thursday at $191.23, then slipped lower on Friday. (Yahoo Finance)
The Federal Reserve’s policy meeting on Jan. 27-28 is next week’s key macro event, with the rate decision set for Jan. 28. Traders will be closely monitoring the Fed’s tone to gauge its impact on risk appetite, which in turn could influence underwriting, advisory pipelines, and client flow at brokers. (Federal Reserve)
But at these levels, there’s little room for slip-ups. Pick’s warning on geopolitics and “higher asset prices” highlights how a steady market can crimp trading, while volatility can stall boards and drag out deals. The easy gains from rerating might already be behind us.
Morgan Stanley sees the Fed’s Jan. 28 meeting as the next major trigger. After banks wrap up earnings, markets will test if the “busy 2026” narrative sticks.
