Stocks climbed out of the red, but finished virtually unchanged after weak earnings from Morgan Stanley and soft growth in China. Jeanne Yurman reports.
Disappointing earnings from Morgan Stanley and data signaling weak growth in China led to sluggish finish for stocks on Monday. Still, Virtu Financial's Matthew Cheslock is encouraged by broader trading patterns. SOUNDBITE: MATTHEW CHESLOCK, EQUITY TRADER, VIRTU FINANCIAL (ENGLISH) SAYING: "Equities are strong. Equities are the place people are putting their money for some kind of return right now. And, if China holds up, you know, we could see another leg up in the market." Weight Watchers' shares skyrocketed on high volume. Oprah Winfrey is buying a ten percent stake and joining the board of the weight loss company. Morgan Stanley's shares took a dive after the investment bank's quarterly profit plunged 42 percent on weak trading revenue. Income fell far short of Street targets. Lackluster demand for girls' toys and a strong dollar produced flat revenue at Hasbro that missed expectations. Shares dropped. Valeant Pharmaceuticals - known for raising drug prices - says expect lower prices hikes ahead. Shares fell on the news. In economic news, U.S. homebuilder sentiment rose in August to its highest level in nearly a decade. And in Europe, a mixed day. Healthcare and telecom shares led stocks mostly higher, but the FTSE finished in the red.