Morgan Stanley shares ended 0.89% higher in Thursday´s New York trading session after the group beat fourth-quarter earnings and revenue expectations.
As with rival Goldman Sachs, which reported its results on Wednesday, Morgan Stanley was hurt by a drop in trading revenues from the fixed income segment amid low volatility.
Nevertheless, in Morgan Stanley´s case it was able to report strong results from its wealth management arm.
Wealth management boost
While low volatility, amid strong growth and subdued inflation, has hurt trading operations, the reverse appears to be true for businesses catering for long-term investors, such as wealth management.
In a similar vein, companies such as US investment manager Blackrock have also been reporting strong results as global equity markets reach new highs and client inflows remain strong.
Morgan Stanley reported overall earnings per share of 84 cents versus analysts´ forecasts of 77 cents.
Group revenue came in at $9.5bn compared with market expectations of $9.2bn.