Morgan Stanley ends 8-day win streak as major market averages lose steam

Morgan Stanley (NYSE:MS) ended an eight-day win streak, with a fall of 0.95% to close at $100.78, as key U.S. stock indexes lost steam after days of racking up wins.

An improvement in economic data helped stabilize financial markets in recent sessions, John Lynch, chief investment officer of Comerica Wealth Management, said.

MS added 10.07% during the course of the last eight trading sessions, with a notable gain recorded on Wednesday, August 14.

The stock closed the day 2.82% higher at $99.44. The day saw the July’s in-line consumer-price inflation report set up the Federal Open Market Committee to start cutting interest rates in September.

Another significant gain was logged on Thursday, August 8. MS finished the trading day 2.74% higher at $94.63.

That day, the major market averages ended higher as worries about the U.S. economy sliding into a recession were eased by a bigger-than-expected decline in weekly initial jobless claims.

“Morgan Stanley had fantastic Q2 earnings with remarkable strength in investment banking in which deal activity is still not within normalized levels, and with further room to go,” said Seeking Alpha author Daniel Urbina.

“Although their net interest income would be affected in the following quarters, and asset management fees have a high probability of dropping if elevated market levels are correct, tailwinds from being so close to potential drops in rates could continue boosting the Institutional Securities segment,” added Urbina.

SA analysts and the Quant Rating system rate the stock as Hold. The sell-side analysts also give the stock a Hold rating.