As Bank of America Corp (NYSE:BAC) and Morgan Stanley (NYSE:MS) prepare to report fourth-quarter earnings Thursday morning, Wall Street is watching. With both stocks riding high after a strong year, it's a showdown between Main Street lending and Wall Street dealmaking.

The Bullish Case For Bank of America Stock

Bank of America’s stock has surged 46.72% over the past year and continues to climb, buoyed by positive technical signals.

Chart created using Benzinga Pro

Trading at $47.20, Bank of America stock sits comfortably above its key moving averages, flashing bullish momentum.

• The eight-day SMA (simple moving average) at $45.71 and 50-day SMA at $45.47 both signal bullish momentum.
• The MACD (moving average convergence/divergence) indicator at 0.22 adds to the optimism for future gains.
• BAC stock’s RSI (relative strength index) of 64.53 suggests the stock has room to run before entering overbought territory.

Investors expect $25.24 billion in revenue and EPS of 77 cents, with strong consumer lending as a potential bright spot.

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Morgan Stanley Stock Faces Mixed Signals But Keeps Long-Term Strength

Despite a 51.70% gain over the past year, Morgan Stanley shows signs of cooling off.

Chart created using Benzinga Pro

Morgan Stanley stock, at $130.41, sits above its eight-day ($126.47), 20-day ($125.80) and 50-day ($128.13) SMAs, signaling bullishness.

• The MACD, however, is a negative 0.11 and the RSI at 58.36 point to sluggish momentum.
• Yet, trading above its 200-day SMA ($107.29) hints at sustained longer-term strength.

Analysts project $15.03 billion in revenue and $1.70 EPS, with Morgan Stanley's wealth management and investment banking segments under scrutiny.

Market Watchers Split On Winners

Technical indicators favor Bank of America's near-term bullish case, while Morgan Stanley's diversified revenue streams offer longer-term resilience.

Both are poised for a financial tug-of-war as investors assess growth prospects amid rising rates and market volatility.

With the Bank of America stock flashing bullish signals across the board and Morgan Stanley stock facing a MACD hiccup, earnings day could reveal who truly holds the upper hand: steady lending or savvy dealmaking. Stay tuned.

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