U.S. Movers: Bank of America, Morgan Stanley, UnitedHealth Group

Scott Peters
16 Jul, 2024
New York City

Bank of America increased 4.4% to $43.73 after the financial services company reported better-than-expected second-quarter results. 

Revenue in the quarter increased 1% to $25.4 billion from $25.2 billion, net income declined to $6.9 billion from $7.4 billion, and diluted earnings per share eased to 83 cents from 88 cents a year ago. 

Net interest income decreased 3% to $13.9 billion from $13.7 billion, and credit loss provision increased to $1.5 billion from $1.3 billion in the previous quarter and $1.1 billion in the period a year ago. 

The average deposit balance in the quarter increased by 2%, or $35 billion, to $1.9 trillion, and the company returned to shareholders $5.4 billion, $3.5 billion in stock repurchases, and $1.9 billion in stock dividends. 

Morgan Stanley advanced 1.1% to $106.65 after the investment bank reported better-than-expected quarterly results. 

Revenue in the second quarter increased to $15.0 billion from $13.5 billion, net income rose to $3.1 billion from $2.2 billion, and diluted earnings per share advanced to $1.82 from $1.24 a year ago. 

The wealth management unit's revenue increased to $6.8 billion from $6.7 billion, driven by a positive market environment and cumulative fee-based asset flows. 

Institutional securities increased to $7.0 billion from $5.7 billion, driven by higher trading activities by clients, strong investment banking fees, and a rise in debt underwriting fees. 

UnitedHealth Group rose 5.6% to $544.54 after the health insurance company reported better-than-expected quarterly results. 

Revenue in the second quarter increased to $98.9 billion from $92.9 billion, net income fell to $4.4 billion from $5.5 billion, and diluted earnings per share advanced to $4.54 from $5.82 a year ago. 

The company adjusted its full-year earnings per share outlook to between $15.95 and $16.40, reflecting the sale of its remaining stake in its South African unit. The company also completed the sale of its large Brazilian operations in the first quarter.