Charles Schwab’s NNA rebound in May softer than expected, says Morgan Stanley

Morgan Stanley analyst Michael Cyprys tells investors in a research note that Charles Schwab reported May monthly metrics this morning that showed a month over month increase of 0.2% in total client assets with NNA inflows of $24.6B, and guided to a 10%-11% year over year revenue decline in Q2, as higher funding costs, smaller interest-earning asset base and softer customer trading more than offset benefits from higher rates. The firm, which made no change to its Equal Weight rating or $68 price target, said the NNA rebound in May was softer than expected.