Chart of the Day: Morgan Stanley Waits Patiently
The stock is drifting sideways waiting for a catalyst. Will upcoming earnings be the spark?
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It's hard to believe with some strength in banks/financials that Morgan Stanley MS is only up about 2% for the first half of 2024. It's remarkable actually, as long rates have come down, the stock market is at/near all-time highs and money is flowing into stocks at a record pace.
Cash on the sidelines is being absorbed into the markets, and suddenly the IPO market is getting warm. All of this equates to good fundamentals for MS, but clearly the chart is not showing the influence of this.
We like the big investment bank for its diversification but also its good concentration in highly profitable areas like mergers and IPO's. There really is no peer for MS, but that is of no consequence for shareholders. In other words, it is an advantage not showing up on the chart.
The indicators are mixed, the stochastics (momentum) are starting to roll over as is the MACD (moving average convergence/divergence). No trend according to the choppiness indicator; we see that in the price chart, too. The top pane has MS with pink/purple candles, bearish on the GoNoGo composite of indicators.
With earnings out very early in July, that may be the catalyst to push the stock higher. We rate MS a Two in TheStreetPro Portfolio.
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At the time of publication, TheStreet Pro Portfolio was long MS.
