NEW YORK, NY / ACCESSWIRE / October 18, 2017 / Shares of Goldman Sachs Group closed in the red in yesterday's trading session, despite announcing third-quarter results that showed revenue and EPS way higher than what the Street was waiting for. The company did, however, post a 17% decline in its Institutional Client Services revenue for the quarter. Shares of Morgan Stanley had a slight close in the green after also beating in its third-quarter report on the top and bottom line.

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The Goldman Sachs Group, Inc.
https://rdinvesting.com/news/?ticker=GS

Morgan Stanley
https://rdinvesting.com/news/?ticker=MS

The Goldman Sachs Group, Inc.'s shares closed down 2.61% on Tuesday with a little over 7 million shares traded. It was a surprising day for the stock after the company reported a third-quarter earnings beat. EPS of $5.02 was not only an increase from the $4.88 it saw in the period last year but also higher than the $4.17 that analysts had expected. Revenue at $8.32 billion was also higher than the $8.17 billion it saw in the third quarter of 2016, and was higher than the $7.54 billion that Wall Street was looking for. So why did the stock drop on earnings that beat on both the top and bottom line? Traders may have been weary over the fact that the company's Institutional Client Services revenue was $3.12 billion for the period. This is a decline of 17% from the same period a year ago.

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Morgan Stanley's shares closed up a modest 0.37% on Tuesday with around 15.5 million shares traded. Though the close in the green was modest, the stock hit a new high of $50.33 during intra-day trading. Shares hit their highest in over nine years yesterday after the company reported its third-quarter earnings report that beat on both the top and bottom line. It was the company's wealth management business posting strong results that resulted in a favorable quarter. According to JMP Securities analyst Devin Ryan, fee-based client account assets grew to a record high of $1 trillion. EPS came to 93 cents, which was way ahead of the 81 cents that analysts had expected. Revenue was also way higher at $9.197 billion compared to the $9.015 billion that was expected. Net wealth management revenue was also a win at $4.22 billion compared to the $4.21 billion that the Street was calling for.

Access RDI's Morgan Stanley Research Report at:
https://rdinvesting.com/news/?ticker=MS

Our Actionable Research on The Goldman Sachs Group, Inc. (NYSE: GS) and Morgan Stanley (NYSE: MS) be downloaded free of charge at Research Driven Investing.

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