Morgan Stanley said Friday it expects to take a $1.25 billion hit from the tax bill that President Donald Trump signed into law in December. The bank said in a regulatory filing that net income for the fourth quarter will include a tax provision of that amount, primarily stemming from the re-evaluation of certain net deferred tax assets using the lower tax rate. Goldman Sachs Group Inc. said in late December that it estimates the new tax legislation could reduce its fourth quarter earnings by about $5 billion, mainly due to the newly enacted repatriation tax for cash and assets held overseas. Morgan Stanley shares were not yet active premarket, but have gained 23% in the last 12 months, while the S&P 500 has gained 20%.
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