Morgan Stanley news
Archived — this story has rotated out of today’s deck. It is kept here in full.
The gist
Morgan Stanley reported third-quarter 2026 earnings before the opening bell on October 14.
The quarter tests whether slower 9.3% revenue growth still supports a falling stock.
Background
Morgan Stanley headed into this week's release with investors focused on whether expected 9.3% revenue growth, slower than last year, still supports the stock after a multi-month decline. The shares had fallen about 11% over the past month and 17% over the last quarter, even though the year-to-date return remained positive and the one-year total shareholder return of 25% pointed to stronger longer-term momentum. The bank was expected to benefit from robust investment banking and equities trading revenue, as rivals Goldman Sachs and JPMorgan Chase showed in their reports this week. In July, it had reported record revenue and profit for the second quarter, powered by a 69% surge in equities trading revenue.
How it unfolded
- Sep 28, 2026Morgan Stanley announced plans to open a U.S. hub in a high-rise on McKinney Avenue near Uptown in Dallas, bringing a $684 million direct capital investment with an overall financial impact expected near $1.3 billion, per local officials' estimates.
- Oct 9, 2026Jim Cramer said of the bank earnings stretch, "So I think they're priced for disappointment. You know what, if they don't actually disappoint, we might actually catch a rally," and urged investors to start accepting "a 6%-plus long bond yield."
- Oct 12, 2026Morgan Stanley downgraded Ally Financial to Hold equivalent (Equal-weight from Overweight) on higher rates and fewer catalysts, cutting its price target to $43.00 from $55.00; shares were 0.77% lower at $37.30 in Monday pre-market trading.
- Oct 13, 2026Morgan Stanley headed into this week's earnings release with investors focused on whether expected 9.3% revenue growth, slower than last year, still supports the stock after its recent multi-month decline.
- Oct 14, 2026Morgan Stanley announced its third-quarter 2026 financial results on its Investor Relations website, to be filed on a Form 8-K with the SEC the same day, with a conference call at 9:30 a.m. ET; it reported earnings before the opening bell Wednesday.
Who’s saying what
- Analysts
- Morgan Stanley analyst Jeffrey Adelson wrote that higher rates drive a reset to 2027/28 expectations, and that flatter net interest margin and credit losses no longer improving mean the path to a midteens ROTCE takes longer.
- Analysts
- Adelson also said three hikes drive NIM below consensus, while flattening used car prices and a tougher macro backdrop likely keep credit from improving much next year.
- Caution
- Jim Cramer said the banks are "priced for disappointment," called the impact of higher interest rates on the stock market his big fear, and urged investors to start accepting "a 6%-plus long bond yield."
- Official
- Dallas Mayor Eric Johnson said the planned Uptown hub will make up for AT&T's departure to Plano and marks Dallas "becoming a true financial services hub for this country"; Texas Gov. Greg Abbott proclaimed, "Opportunity's address is now Y'all Street."
Still unverified
Whether Morgan Stanley's planned Uptown hub will make up for AT&T's departure to Plano is "less straightforward," and there are legitimate reasons to not agree with Mayor Eric Johnson's claim.