Nasdaq continues rally as PayPal climbs on bid, BlackRock earnings impress Proactive uses images sourced from Shutterstock 12:05pm: More impressive bank earnings
Morgan Stanley (NYSE:MS) (Morgan Stanley (NYSE:MS)) reported record second quarter revenue and profit that topped Wall Street expectations on Wednesday, driven by strength across its institutional securities, wealth management and investment management businesses.
The bank posted earnings per diluted share of $3.46 on net revenue of $21.35 billion for the quarter ended June 30, exceeding analysts’ expectations of $2.93 per share on revenue of $19.63 billion. A year earlier, Morgan Stanley (Morgan Stanley (NYSE:MS)) reported earnings per share of $2.13 on revenue of $16.79 billion.
Elsewhere, BlackRock Inc (NYSE:BLK) (BlackRock Inc (NYSE:BLK)) reported second-quarter profit that topped Wall Street estimates on Wednesday, powered by record inflows and higher fees.
The world’s largest asset manager posted adjusted earnings of $13.91 per share, beating the average analyst estimate of $12.57 and up 15% from a year earlier.
Revenue rose 31% to $7.08 billion, ahead of the $6.72 billion expected by analysts.
11:00am: PPI slows
US producer prices unexpectedly declined in June, adding to signs that inflation pressures are easing and strengthening expectations that the Federal Reserve could begin cutting interest rates in the coming months.
The Producer Price Index (PPI) fell 0.3% month over month, compared with expectations for no change, while annual producer inflation slowed to 5.5% from the expected 6.2%.
Core PPI, which excludes food and energy, rose 0.2% on the month, below forecasts of 0.3%, while the annual core rate eased to 4.7%, also coming in below the expected 5.1%.
10am: PayPal and BlackRock lead Wall St higher at open
Wall Street has opened Wednesday trading on the front foot, with investors digesting more earnings.
The Nasdaq has added 0.6% in initial trades, while the S&P 500 and the Dow both climbed 0.3%.
PayPal leapt 14.5% on a reported bid from that payments company Stripe and private equity firm Advent.
BlackRock is among the standout S&P performers, jumping more than 7% after the world’s largest asset manager reported a record US$15 trillion of assets under management.
The group attracted US$192 billion of net inflows during the second quarter as investors continued to pour money into exchange-traded funds.
Elsewhere, uniform supplier Cintas rose 4.7%, while software groups Adobe and Workday were also among the leading gainers in the Nasdaq 100.
8am: Nasdaq set to rally but Dow futures flat, PayPal climbs on bid report
US stocks appeared set for a steady start on Wednesday as investors drew confidence from strong bank earnings and a softer-than-expected inflation report the day before, even as oil prices remained elevated following fresh US strikes on Iran.
Nasdaq futures were up 0.5% ahead of the opening bell, with S&P 500 futures up 0.1%, while those for the Dow Jones were little changed.
Wall Street finished mostly higher on Tuesday after June’s consumer price data came in below expectations, easing concerns that the Federal Reserve may need to raise interest rates this month.
The Nasdaq climbed 0.9% to close at 26,107.01, the S&P added 0.4% to 7,543.59 and the Dow inched 10 points or 0.02% higher to 52,508.27.
European markets were weaker in Wednesday trading, however, as slower-than-expected Chinese economic growth weighed on sentiment. London’s FTSE 100 was dragged lower by miners and other cyclical stocks after China GDP expanded 4.3% in the second quarter, its slowest pace since 2023 and below the government’s 4.5%-5% target range. Germany’s DAX was down 0.8%.
Oil prices were trading broadly sideways following the recent surge, with WTI crude up 0.5% at just under $80 a barrel.
Investors were also watching PayPal, whose shares jumped over 18% in pre-market trading after Reuters reported that privately held Stripe had teamed up with Advent International to make a joint US$53 billion takeover approach.
Also, Nasdaq-listed ASML, the Dutch semiconductor equipment maker, is set to climb around 3.5% after raising its 2026 guidance for a second time.
Earnings from Johnson & Johnson (NYSE:JNJ), Morgan Stanley (NYSE:MS), BlackRock, Progressive and BNY are also out today.