CNBC Daily Open: Investment banking sees signs of life – CNBC

This report is from today’s CNBC Daily Open, our new international markets newsletter. CNBC Daily Open brings investors up to speed with everything they need to know, no matter where they are. You like what you see? you can subscribe here.

positive market moment
All major US indices late tuesday. The Dow Jones Industrial Average had its seventh straight day of gains as investors digested better-than-expected corporate earnings. european markets traded higher also. The benchmark Stoxx 600 index rose 0.6% while British grocery delivery company Ocado rose nearly 20%.

Microsoft 365 + $30
Microsoft shares rose about 4% to hit an all-time high after the company advertised price for its new artificial intelligence service. Called Co-pilot, the service costs an additional $30 per month on top of the basic Microsoft 365 subscription for Office products. Microsoft also announced that its Bing Chat can now respond to pictures.

the other morgan
Morgan Stanley shares rose 6.45% after the bank reported better-than-expected second-quarter earnings and revenue. Revenue increased 2% to $13.46 billion, driven by a 16% increase in wealth management revenue. Profit fell 13% to $2.18 billion from a year earlier, but investors took comfort in comments from Chief Executive Officer James Gorman that the coming quarter looks “more constructive.”

Banking at Bank of America
Investors pushed Bank of America shares as much as 4.42% in the bank Earnings and revenue top second quarter. Both figures were also higher year-over-year. Profit increased 19% to $7.41 billion, while revenue increased 11% to $25.33 billion, helped by a 14% increase in net interest income.

[PRO] cautious fund managers
Over the past few days, we’ve heard about how the S&P 500 could hit an all-time high this year in the midst of a perpetually postponed recession. But fund managers remain cautious, according to Bank of America’s latest Global Fund Managers Survey. So are the managers allocating your investmentsand the assets that concern them.

In another sign that the US economy is more resilient than anticipated, banks have performed well this earnings season.

Yes, the big banks like it JPMorgan Chase, Morgan Stanley and Bank of America they are supposed to benefit from the higher interest rates that brought down regional banks like Silicon Valley Bank and First Republic.

But investment banking activity, which slowed when the higher rates were first implemented last year, is seeing signs of picking up.

JPMorgan investment banking income exceed estimates. As Octavio Marenzi, chief executive of consultancy Opimas, put it, “Investment banking, which has been a troubled child for the last year or so, is beginning to show signs of life.”

In fact, Bank of America’s investment banking fees increased 7% to $1.2 billion.

And while Morgan Stanley hasn’t fared as well on the investment banking front, Chief Executive Officer James Gorman said he thinks “we’re very, very close” to the end of rate hikes. That would give the banking sector a more stable base on which to operate and rebuild.

Regional banks were not left out of the wave of optimism in the sector either. charles schwabthat it got fought since the March banking turmoil, has also seen better-than-expected earnings and revenue Last room. Investors cheered and gave the bank’s shares a 12.57% rise.

More revealing, the SPDR Regional Banking ETF It added 4.22% to reach $45.73, its best earnings day since June 6, and its most expensive since early March, before the failure of several regional banks.

Broader indices also closed higher. He S&P 500 rose 0.71%, the Dow Jones Industrial Average added 1.06% and the Nasdaq Composite rose 0.76%.

Goldman Sachs reports later today, concluding the earnings of the big banks.