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: MS I:BKX

NEW YORK ( TheStreet) -- Morgan Stanley (MS) was the loser among major U.S. financial names on Thursday, with shares down over 1% to close at $21.98.

The major indexes all showed solid gains, heading into the three-day weekend for the stock market. The S&P 500 (SPX.X) closed at 14,574.70, above its previous closing record of 1,565.15, reached on October 9, 2007. The KBW Bank Index (I:BKX) was down slightly to close at 56.27.

Banks in Cyrus reopened for the first time since March 16, as customers calmly lined up to make withdrawals after the island nation secured a 10 billion euro bailout for its floundering banking sector. The deal agreement allows Cyprus Popular Bank -- the second largest Cypriot bank -- to fail, with its performing assets folded into the Bank of Cyprus. Depositors in both of the nation's largest banks will take losses initially estimated at roughly 30% on balances above 100,000 euro, while smaller deposit accounts will be unaffected.

Depositors in Cyprus were initially limited to daily withdrawals of 300 euro, and other capital controls were imposed, allowing people leaving the country only to take up to 3,000 euro in cash, in any currency. The government of Cyprus also announced that "Businesses will be able to carry out transactions up to EUR5.000 per day, per account and pay staff salaries. Payments and or transfers outside the Republic, via debit and or credit and or prepaid cards are permitted up to EUR5.000 per month, per person in each credit institution."

Cyprus is paying a very high price to remain a member of the euro club. Early on Thursday, Credit Suisse's European Economics Team said it expected "real GDP to decline by more than 20% in the next couple of years, rendering many assumptions of the bail-out obsolete. Cypriot unemployment is likely to rise above 20%."

That means that Cyprus could well need an additional bank bailout. That's a very familiar story, when considering the situation in Greece. It's also worth noting that Iceland is not a member of the euro common currency, and the country has rebounded rather nicely from the collapse of its own outsized banking system in 2008. In its report on economic indicators for February, the Central Bank of Iceland said that its economic output had increased year-over-year, for five of the past six quarters. Iceland's unemployment rate at the end of 2012 was 5.4%, which compares quite well with most other countries.

Economic Reports Mostly Negative

The Department of Labor said that initial unemployment claims for the week ended March 23 increased by 16,000 to a seasonally adjusted 357,000, from the previous week's upwardly revised figure of 341,000. That's the sharpest rise in unemployment claims so far this year. Economists on average expected initial jobless claims to come in at 340,000, according to Zacks.

1 of 3

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 18,053.71 +23.50 0.13%
S&P 500 2,088.77 +6.89 0.33%
NASDAQ 4,806.8590 +33.3870 0.70%

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