Morgan Stanley (MS) news that moved the stock

What happened

Bank of America shares fell 4% Wednesday after its Q3 results came up shy of analysts' estimates, coming on top of the $1.21 billion Treasury Department fine for alleged money-laundering violations disclosed earlier. In contrast, BlackRock stock surged 5% on its own results, and Morgan Stanley shares advanced less than 1%. The divergence extends Tuesday's split bank-earnings picture, where Goldman soared on a big beat while JPMorgan, Citigroup, and Wells Fargo all closed lower despite mixed-to-positive results.

What happened

Citigroup reported Q3 net income of $5.2 billion, up 40% year over year, or $2.85 per share, beating the $2.65 consensus (some tallies had $2.62). Revenue rose 8% to $23.85 billion, which CEO Jane Fraser called the best third-quarter revenue in a decade, slightly ahead of the $23.72 billion expected. Growth was broad: Services revenue rose 15% to $6.6 billion on deposits, payments and fees; Markets rose 6% to $6.1 billion with equities trading up 14% and fixed income up 4%; Banking rose 6% to $1.7 billion with investment-banking revenue up 9%; Wealth Management climbed 15% to $3.3 billion; U.S. Consumer Cards revenue was roughly flat at $4.7 billion. Net interest income increased 14%, return on tangible common equity was 11.5%, and provisions for credit losses rose 6% to $2.59 billion. Citi returned over $4 billion to common shareholders and said it expects to exceed this year's return target. Shares were down about 0.6-0.7% in premarket trading / at writing despite the beat. The year-over-year profit jump was flattered by a year-ago goodwill charge tied to plans to shed Mexican bank Banamex.

What happened

Goldman Sachs reported Q3 earnings of $17.01 per share, well above the $12.86 consensus, on revenue of $18.68 billion versus $16.83 billion expected, up 23% year over year. Global banking and markets revenue jumped 32% to $13.46 billion, investment-banking fees surged 21% on higher advisory and equity underwriting, FICC revenue was essentially flat, and asset and wealth management revenue rose 14% versus 3% expected growth. JPMorgan Chase reported $5.75 per share on $50.9 billion in revenue, missing consensus of $5.93 and $51.23 billion; consumer and community banking revenue rose 9%, commercial and investment bank revenue rose 14% with banking fees up 14% and markets revenue up 15%, but FICC trading fell 4% while equities markets revenue jumped 49%, and asset and wealth management revenue of $6.9 billion fell short of $7.55 billion expected. Wells Fargo earned $1.87 per share, just above the $1.85 estimate, on revenue of $21.87 billion, up 2% but below the $22.31 billion expected. CEO Jamie Dimon said the U.S. economy continued to be fueled by strong business investment and ongoing consumer spending, but warned that large fiscal deficits, sticky inflation, elevated asset prices, rising interest rates and geopolitical conditions continue to shift under the surface.