Movers: Bank of America, Bank of New York Mellon, Lockheed Martin, Morgan Stanley, PNC Financial

Scott Peters
18 Jul, 2023
New York City

The S&P 500 index traded higher 0.1% to 4,521.87 and the Nasdaq Composite futures edged up 0.9% to 14,232.68.

Morgan Stanley gained 3% to $88.88 after the financial services provider reported a smaller-than-expected decline in earnings in its latest quarter. 

Net revenues in the second quarter increased 2% to $13.5 billion and net income declined 13% to $2.2 billion from $2.5 billion and diluted earnings per share dropped to $1.24 from $1.39 a year ago. 

Revenue in the wealth management segment revenue increased 16% to $6.6 billion from $5.7 billion, institutional securities segment declined 8% to $5.6 billion from $6.1 billion and investment management dropped 9% to $1.3 billion from $1.4 billion. 

Return on average tangible common equity decreased to 12.1% from 13.8% and tangible book value edged up to $40.79 from $40.07.  

The company increased its quarterly dividend by 7.5% to 85 cents a common share. payable to shareholders on record on July 31 on August 15. 

Bank of America jumped 2.5% to $30.01 after the bank reported better-than-expected revenue and earnings in its latest quarter results. 

Revenue, net of interest expense, increased 11% to $25.2 billion from $22.7 billion and net income rose 19% to $7.4 billion from $6.2 billion and diluted earnings per share increased to 88 cents from 72 cents a year ago. 

Provision of credit losses increased by $602 million to $1.1 billion. average deposit balance declined 7% to $1.9 trillion and average loan and lease balance increased 3% to $1.0 trillion. 

PNC Financial Services declined 0.6% to $126.25 after the regional bank reported lower-than-expected revenue in its latest quarter.

 Revenue increased to $5.3 billion from $5.1 billion and net income edged up $1.5 billion from $1.49 billion and diluted earnings per share edged down to $3.36 from $3.39 a year ago. 

Tangible book value per share increased to $77.80 from $74.39 from a year ago. 

Average loans in the quarter increased to $324.5 billion from $304.8 billion and average deposits declined to $425.7 billion from $446.5 billion from a year ago.  

Net interest rate margin expanded to 2.79% from 2.5%. 

The bank lowered its annual net interest income increase range between 5% and 6% from the previous range between 6% and 8%.  

Bank of New York Mellon Corp increased 4.5% to $45.52 after the bank reported better-than-expected quarterly results. 

Revenue increased 5% to $4.5 billion and net interest income rose 33% to $1.1 billion from $824 million a year ago. Net income rose 24% to $1.06 billion from $864 million and diluted earnings per share advanced to $1.30 from $1.03 a year ago. 

Provision for credit losses declined to $5 million from $47 million a year ago. 

Average loans declined 8% to $63.4 billion from $69.0 billion and average deposits fell 11% to $277 billion from $311 billion a year ago. 

The company returned $745 million to shareholders, including $448 million common stock repurchase. 

Lockheed Martin Corp fell 0.04% to $469.76 after the defense contractor reported quarterly results met some investors' expectations. 

Revenue in the second quarter edged up 8% to $16.7 billion from $15.4 billion and net income rose to $1.7 billion from $309 million and diluted earnings per share advanced to $6.63 from $1.16 a year ago. 

Order backlog increased to record high $158 billion. 

Free cash flow declined to $771 million from $1.027 billion a year ago. 

The company revised higher its annual sales range to between $66.25 billion and $66.75 billion from the previous estimate between $65.0 billion and $66.0 billion released in April.