Bloomberg, United States, Morgan Stanley discussed on Bloomberg Markets
Now, Bloomberg markets is underway with Lisa and Pimm. Yes. It is Bloomberg. We're about halfway into about a half hour into the trading of the market today. Let's see what's moving and shaking the equity markets with Bloomberg stocks editor Dave Wilson has also contributed to Bloomberg's markets live blog. I'll tell you. It's the market. That's really looking for directly at this point. It's all about the company specific stories are so would seem at the moment when you figure financial stocks, which had been the leaders the past few days, I mean more so than they've been in some time, they're the worst performers on the day, the S and P five hundred eleven main industry groups that a lot of that is the results out of Morgan Stanley. You know, it's interesting because we've seen all week, you know, just how much the bond trading revenue with the biggest US financial companies suffered last quarter Morgan Stanley took a bigger hit than its peers down thirty percent. The thing is though, and if you go back and look in earlier this week the other firms, they're competing against dance something to offset. What was going on Goldman Sachs? It was all about their fees from advising on mergers. With Bank of America was their growth in loans, the widening of their net interest margin that prophet gauge Morgan Stanley really didn't have. So you're left with revenue trailing estimate for the first the the average estimate once we serve it with for first time in more than three years, and you've got to stock that's down six percent, and shades and really helping to drag down the financials, you know, the other hand, I mean, you look at a company like say PPG industries in story. They're bitter investor Nelson peltz his firm triumph fund management talking about splitting the company in into and go look at that. And decide what to do by June. He got those shares up four percent chase. It's really sort of a back and forth at this point. So definitely the banks front and center, we're going to be speaking more about them with ten Leon global director of industry and equity research at CF shortly. But Dave, I wanna just broaden this out a little bit because we are hearing a lot of gloom and doom at if a growing number of Wall Street firms saying the partial government shutdown, which is the longest in history is going to take a bite out of earnings a bite out of stock performance, a bite out of Chidi p have we seen any evidence that most people agree with them. Well, look, there are the effects of the shutdown that you've got the airlines talking about them, for example, you don't others. So you can look at that and say, well, you people don't want to fly so much. So that becomes an area to look at. I mean, it's sort of incremental company by company, well, except I will say ever core came out and said, they expect the shutdown have. To take a bite out of stock performance as well. Right. Well, they go. I mean, it's a matter of how these kind of shake out, I'll give you an interesting sort of counterpoint to that company called facile, which does industrial distribution they came out with their quarterly results. And they talked about how last year they weren't really hurt by tariffs and this year, they expect to be. So how's the market react to all that? That's not shares up three point seven percent third-biggest S and P five hundred right now. So it's a matter of how much of an effect will these sort of things have and can companies find a way to deal with them. Why don't be seen from the technology sector? Just we get into this earning season. Probably the next big wave of companies. We'll get some of these technology and consumer companies reporting. What are you hearing out there? What are you seeing out there? In terms of again is brought up the shutdown terraced trade any of those macro issues that are so concerning to economists are we hearing any of the companies citing them as potential impacts on their business or headwinds. Well, we don't necessarily have enough. To go by yet that will be something to look forward to as we go through the next week and really start to see some of those companies reporting IBM, for example is one that's out next week. I can't help thinking about Netflix, which you mentioned earlier because you know, the story there, you really do have an interesting kind of setup because you know, they're raising subscription prices people love that shares take off. Now the question is what kind of growth do they have in subscribers at this point? And then how do they see the higher subscription prices? Affect I will say we spoke with Mark steel house yesterday who said he doesn't Mark quarter of steel house. He was saying that he thinks that the only reason why net would have announced this kind of price hike right before their earnings was if their earnings were knockout, great, and they were adding a lot of subscribers because otherwise the risk to their to their perception of their healthiness would be would be much greater so I'm just put that. No, I get that. Because otherwise it probably delay to next week. And you know, so that way people wouldn't be so worried about it. And the these are the sort of things as you work through the technology story that you're gonna have to look at it. It's interesting with Netflix, and it's most of their subscriber. Well, the majority of the strategy today are outside of the US all of their growth is outside of the US. So here's a company that will increasingly become a little bit from technology. Consumer behavior perspective a little bit of a bellwether for global kind of consumption as they continue to grow outside the US, particularly in growth markets like India, for example, right? And the challenge they're going to have is how do they provide programming that's going to work in the local markets? I mean, there's this big push to add all these series, and documentaries, and you name it. Of course, a lot of that is in English. And we know that about India, it's a very specialized kind of cinema over their meal with Bollywood movies, and so on how are they going to be able to deliver? What people? In various countries around the world are going to wanna see me that really does kind of affect what their subscription outlook. All I know is I'm watching Arcos, and it's all subtitles. And I don't even notice it anymore. So whatever they're doing seems to be working. They figured it out. They go. Oh, I just wanna get also a read on where we are in earnings reporting where we are heading so far that performance has been really good at any upside surprise or even not as big of a disappointment as possible. Is there any big takeaway that you can give us it's a little early for that if only because we've really sort of scratched the surface in terms of results. I mean, we will have a better idea definitely next week. Even though it's a short week and you're looking at like seventy five companies and the S and P five hundred reporting. So you put them together with the ones we had so far, and then you will really start to get feel for what's happening on the earnings front. So far, so good. I guess the banks essentially the banks, well, very, very tough so bad. That's right. That's right. Now our fourth quarter, but outlook looks looks better. And we'll see as we get into more of the consumer technology next week. Yeah. So anyway, so thank you very much. David. We will have you back later in the week. Certainly this is Bloomberg. Let's head over to one studios. No, washington. DC make world's national headlines. Nathan. Thank you. Lisa. President.