Wall Street Rally Boosts Morgan Stanley and New Premier Executive Ted Piker

Morgan Stanley's (MS) first-quarter profit rose as the Wall Street giant benefited from growth in its investment banking, trading and asset management businesses.

This accomplishment is a shot in the arm for new Matron Executive Officer Ted Pick, who took over in January.

Net revenues were $3.4 billion, an increase of $14% from the same period last year and an increase of $125% from the fourth quarter. revenues were $15.1 billion, an increase of $4% from the same period last year and an increase of $17% from the fourth quarter.

Performance was better than expected. Analysts had previously expected net income to decline and net revenue to be flat.

Morgan Stanley's investment banking and trading businesses also exceeded analysts' expectations. Morgan Stanley's investment banking fees increased by 19% compared to the same period last year, driven by equity and fixed income underwriting as IPOs and bond offerings picked up.

Analysts expect investment banking fees to rise at half the rate of the same period last year.

Its stock rose more than 3% in pre-ban trading.

A weak area is consultation. These fees are down from a year ago due to "fewer completed acquisition transactions".

The company's equity and fixed-income trading was up slightly from a year ago, also more than offsetting expectations for a decline.

Wall Street has been waiting for two years for trading to turn around, and the big banks are starting to show signs of a comeback in their first-quarter business results.

Morgan Stanley's competitor Goldman Sachs (GS) even showed growth in its own first-quarter business.

The firm reported Monday a surge in investment banking business, which included a 24% increase in advisory fees, a 38% jump in debt underwriting and a 45% increase in equity underwriting fees.

I've said before that historically low activity levels don't last forever," Goldman Sachs chief executive David Solomon told analysts on Monday, adding, "It's clear that we're in the early stages of a reopening of the capital markets. "

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