When Morgan Stanley (NYSE:MS) was approved last September to become a bank holding company, it was only a matter of time before the New York-based firm would open its wallet and make acquisitions that would expand its retail banking services presence. That time may be now as the Nikkei newspaper reported Tuesday that Morgan Stanley is on the prowl for a U.S. depository institution. Investors reacted positively pushing Morgan Stanley shares up $1.13, or 4.80%, to $24.65 following the broader markets, which also finished in the green. The Dow closed up 127.27, or 1.62%, to 7,969.00, and the Nasdaq moved up 35.64, or 2.22%, to 1,643.85.
Investors will be scrutinizing on Wednesday Morgan Stanley's first-quarter earnings, with analysts polled by Thomson Reuters last week expecting to see a loss of 9 cents per share.
Meanwhile, on the tech front, shares of chip developer Broadcom Corp. (NASDAQ:BRCM) fell $1.27, or 5.83%, to $20.52 as it offered $764 million for storage equipment maker Emulex Corp. (NYSE:ELX). Corporate Dealmaker's Baz Hiralal writes: "Broadcom president and CEO Scott A. McGregor is selling the deal as creating a one-stop shop for key networking and storage technologies for the enterprise and for the industry."
It wasn't all roses on the market as shares of media company New York Times Co. (NYSE:NYT) fell 91 cents, or 15.56%, to $4.94 following an earnings announcement of a $75 million loss in the first quarter as advertising revenue dropped 27%. Janet L. Robinson, president and CEO of New York Times, said, "We believe the rate of decline in ad revenues in the second quarter will be similar to that of the first." - Gerald Magpily
Dealscape: Morgan Stanley earnings preview
Dealscape: Broadcom offers $764M for Emulex
Dealscape: New York Times carries loss, wins 5 Pulitzers
Continue reading below
