This Day On The Street
Continue to site right-arrow
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 Stanley: Financial Loser

Stocks in this article: BAC MS I:BKX

NEW YORK ( TheStreet) -- Morgan Stanley (MS) was the loser among the largest U.S. banking names on Thursday with shares sliding 2.5% to close at $19.74.

The broad indexes were mixed, after the U.S. Labor Department reported that initial jobless claims for the week ended March 24 declined by 5,000 to 359,000, from a revised 364,000 the previous week. While initial jobless claims were at their lowest level since April 2008, the good news was not enough to keep U.S. stocks from following European markets down, now on fears of over government deficits in Portugal and Spain, with both countries seeing sovereign debt yields climb recently.

The U.S. Treasury on Thursday said it had completed an auction of preferred shares held by the government for six banks that had received bailout assistance through the Troubled Assets Relief Program, or TARP. The Treasury sold $410.8 million in TARP preferred shares, netting about $362 million after expenses, for a loss to the government of $48.8 million.

However, in its statement, the Treasury added that it had "recovered $260 billion from TARP's bank programs through repayments, dividends, interest, and other income - compared to the $245 billion initially invested," so that "each additional dollar recovered from TARP's bank programs is an additional dollar of profit for taxpayers."

The KBW Bank Index (I:BKX) pulled back over 1% to close at 49.58, with all 24 index components seeing declines, except for KeyCorp (KEY), which was flat, at $8.48.

Morgan Stanley's shares have now returned 31% year-to-date, following a 44% during 2011.

Content on this page requires a newer version of Adobe Flash Player.

Get Adobe Flash player

European fears may have been a contributing factor the Morgan Stanley's slide on Thursday, with the company reporting net exposure to Italian bonds of $4.9 billion as of Dec. 30, while net exposure to Spanish securities totaled $1.4 billion.

Credit Suisse analyst Howard Chen last Friday reiterated his "Outperform" rating for Morgan Stanley, with a $26 price target, and while he expects the company to post operating earnings of 40 cents a share for the first quarter, he expects a messy quarter, with a bottom-line net loss of 41 cents a share, "entirely to the incorporation of $2.2 Bn in debit valuation adjustment losses."

Morgan Stanley trades for nine times the consensus 2013 EPS estimate of $2.32, among analysts polled by Thomson Reuters. The consensus 2012 EPS estimate is $1.94.

Interested in more on Morgan Stanley? See TheStreet Ratings' report card for this stock.

1 of 2

Select the service that is right for you!

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!


DOW 18,030.21 +6.04 0.03%
S&P 500 2,081.88 -0.29 -0.01%
NASDAQ 4,773.4720 +8.0480 0.17%

Brokerage Partners

Rates from

  • 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