Stock Market News: Visa Inc. (V) and Morgan Stanley (MS)
Yesterday Visa Inc. (V) made an initial public offering of its stock. It turned out to be the largest in U.S. history, raising close to $18 billion. Today the stock is rising rather rapidly. The Financial Post reports on the life Visa Inc. is breathing into the financial sector:
The offering is the first bright spot for the 2008 U.S. IPO calendar, which has fallen into the doldrums as growing credit market woes have spooked investors. The volume of IPOs year to date is about half what it was a year ago, according to data tracker Dealogic.
Additionally, the move has allowed Visa to redeem shares held by JPMorgan (JPM) and others. This increases the capital held by those companies, and provides some much needed liquidity in the financial sector.
Morgan Stanley (MS)
Morgan Stanley is also providing the stock market with some good news this morning. The New York Times reports that the investment bank reported a first quarter profit:
In another boost to confidence on Wall Street, Morgan Stanley, the investment bank, reported a profit of $1.5 billion for its first quarter Wednesday, surpassing analyst estimates and further easing investor fears of another investment bank failure following the collapse of Bear Stearns.
This is good news, as it proves that the financial sector is not beyond redemption, and that there is hope for a turnaround. Morgan Stanley is beating expectations, and this could provide a little more confidence in a sector — and a stock market — that has been struggling.
In other investing news, WL Ross has announced that it will buy Option One, H&R Block’s struggling mortgage division. A previous deal with Cerberus had fallen through, and Option One had to stop mortgage origination operations.
Disclaimer: I am not an investment professional. Nothing in this piece or on this Web site should be construed as investment advice. Before making investment decisions, do your own research and/or consult with an investment professional.
Tags: Visa Inc. (V), Morgan Stanley (MS), stock market news, stock investing blog,
Morgan Stanley earnings, Visa initial public offering, Option One H&R Block
