Strong results from Morgan Stanley (NYSE: MS) and Bank of America (NYSE: BAC) provide more evidence that the banking sector is picking up steam. They join rivals, JP Morgan Chase (NYSE: JPM) and Citigroup (NYSE: C), which also reported well-received results.
Easing fears about the European debt crisis, recovery from mortgage-related losses, the relative strength in the U.S. economy and more activity in the capital markets have all contributed to the rejuvenation of financials.
But the banks might not be entirely in the clear just yet. First quarters have commonly been the best for the financial sector for years, with subsequent quarterly results trending downwards.