Equity futures pointed to a lower open on Thursday as Morgan Stanley fell short on fourth-quarter profit and revenue.
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Concern over China’s economic outlook and possible U.S. tariffs on European cars shook global markets.
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Dow Jones futures were lower by 0.4 percent. The S&P 500 slipped 0.4 percent and the Nasdaq Composite was off 0.4 percent.
Morgan Stanley reported fourth-quarter earnings per share of $0.80 on revenue of $8.5 billion on Thursday. Analysts expected profit per share of $0.89 on revenue of $9.24 billion.
On an adjusted basis due to a $0.07 tax benefit, EPS came in at $0.73.
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Shares turned lower following the release of the results.
| Ticker | Security | Last | Change | %Chg |
|---|---|---|---|---|
| MS | MORGAN STANLEY | 44.49 | +1.61 | +3.75% |
| JPM | JP MORGAN CHASE & CO. | 102.50 | +0.82 | +0.81% |
| GS | GOLDMAN SACHS GROUP INC. | 197.08 | +17.17 | +9.54% |
| C | CITIGROUP INC. | 62.19 | +0.81 | +1.32% |
Europe’s carmakers fell as much as 1.5 percent after U.S. Senate Finance Committee Chairman Chuck Grassley said he thought President Trump was “inclined” to impose tariffs on European cars to win better terms on agriculture.
London’s FTSE fell 0.7 percent, Germany’s DAX was down 0.4 percent and France’s CAC was off 0.4 percent.
In Asian markets on Thursday, China’s Shanghai Composite closed down 0.4 percent as China’s economy looked poised to report its worst growth figures in a decade.
Hong Kong’s Hang Seng ended the day 0.5 percent lower and Japan’s Nikkei index closed down 0.2 percent.
| Ticker | Security | Last | Change | %Chg |
|---|---|---|---|---|
| I:DJI | DOW JONES AVERAGES | 24207.16 | +141.57 | +0.59% |
| SP500 | S&P 500 | 2616.1 | +5.80 | +0.22% |
| I:COMP | NASDAQ COMPOSITE INDEX | 7034.6932 | +10.86 | +0.15% |
U.S. stocks closed higher Wednesday following better-than-expected profit reports from Goldman Sachs and Bank of America.
The two big banks helped lift all three major stock averages into positive territory and offset worries stemming from the overwhelming defeat of British Prime Minister Theresa May’s Brexit plan.
Goldman Sachs revealed fourth-quarter profit of $2.54 billion, or $6.04 per share, on revenue of $8.08 billion. Analysts had expected profit per share of $4.45 on revenue of $7.63 billion.
Bank of America reported fourth-quarter profit rising to $7.28 billion, or 70 cents per share, well above analyst estimates of 63 cents per share. Revenue climbed to $22.74 billion, higher than Street estimates of $22.39 billion.
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