Stock Market Update

[BRIEFING.COM] The Nasdaq Composite (+0.6%) sits a touch off of earlier levels as tech faces a slight pullback from earlier highs, while the S&P 500 (+0.5%) and DJIA (+0.5%) are little changed from previous levels. 

The financials sector (+0.9%) is now among the best-performing S&P 500 sectors today, supported by strength in investment banking names after a batch of solid earnings reports this morning. 

Morgan Stanley (MS 189.75, +8.97, +4.96%) is moving higher after delivering a sizable EPS beat, while revenue increased 10.3% year-over-year to $17.9 billion, which was in line with expectations. The results reflect continued broad-based strength across the firm, particularly in investment banking and wealth management.

Management struck a constructive 2026 tone, saying pipelines remain healthy and activity is improving as corporates and sponsors lean back into M&A and capital raising, with a reopening IPO market adding opportunity. In Wealth, client engagement stayed strong, and management expects net interest income to be fairly steady near term and improve as the year progresses.

Meanwhile, Goldman Sachs (GS 964.75, +32.08, +3.44%) is another top mover after easily beating earnings expectations for Q4. Results were fueled by robust performances from the Global Banking & Markets division, particularly in investment banking and trading. While net revenues declined 3.0% year-over-year, this was primarily due to the transfer of the Apple Card portfolio to JPMorgan Chase (JPM 311.58, +3.72, +1.21%). EPS reached $14.01, a 17% increase from the $11.95 reported in the prior year period. EPS was bolstered by a $2.12 billion net benefit to provision for credit losses, primarily driven by the release of $2.48 billion in loan loss reserves following the finalized agreement to transfer the Apple Card portfolio.