This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Morgan Saga Provides the Drama

A half-decent advance, spurred in part by the departure of Morgan Stanley (WMD) CEO Philip Purcell, turned into meager gains for stock proxies Monday, as a spike in oil prices and profit-taking in the financial sector ate into the early gains.

The price of crude oil again raced higher, gaining $2.08 to $55.62 per barrel, fast approaching its all-time high of $58.28 touched on April 1. That was enough to shave off some earlier buying enthusiasm, especially ahead of key inflation data due on Tuesday and Wednesday.

The Dow Jones Industrial Average ended higher by 9.93 points, or 0.1%, at 10,522.56, after rising to an intraday high of 10,589. The S&P 500 added 2.71 points, or 0.2%, to 1200.82, off a high of 1206. The Nasdaq Composite advanced 5.96 points, or 0.3%, to 2068.56, off a high of 2078.

But let's face it, all the drama on Monday was provided by Morgan Stanley, whose board chose to sweeten an otherwise bitter preannouncement of weak second-quarter earnings with Purcell's ousting.

The Amex Broker/Dealer index eventually finished in the red, losing 0.21%, on profit-taking of earlier gains. But Morgan Stanley shares remained higher, advancing 2.0% on the day. And fellow brokerage J.P. Morgan (JPM) (which also issued a profit-warning earlier this month) also gained 0.2%. Interestingly, it was those brokers that haven't warned that took a hit in afternoon trade; Lehman Brothers (LEH) lost 1.17% and Merrill Lynch (MER) fell 0.91%.

Big Bad Brokers

It's barely a secret anymore that Wall Street likes bad news. But when shares of Morgan Stanley rally after the company issues a profit warning, one could ask where the buying opportunity lies.

Some say it was right there with the warning: Purcell was ousted in a clear response to pressure, not only from some of the firm's alumni, but from investors who've seen their shares underperform Morgan's peers in the broker-dealer universe.

1 of 3

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,778.15 +421.28 2.43%
S&P 500 2,061.23 +48.34 2.40%
NASDAQ 4,748.3960 +104.0840 2.24%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs