 A mixed second-quarter earnings for financial sector stocks continued on Thursday with reports from Bank of America Corp NYSE: BAC, Morgan Stanley NYSE: MS and Charles Schwab Corporation NYSE: SCHW.The trend of strong trading revenue and large loan losses continued Thursday.Heres what investors should know.Bank of America Adds 4B In Reserves: Bank of America reported adjusted EPS of 37 cents on revenue of 22.5 billion. Both numbers exceeded consensus analyst estimates of 27 and 22 billion, respectively.The earnings beat was driven in large part by 3.2 billion in bond trading revenue, up 50 from a year ago. Equities trading revenue was also up 7 to 1.2 billion.Despite the top- and bottom-line beats, the bank also increased credit loss reserves by 4 billion.In the most tumultuous period since the Great Depression, we delivered for our clients, our employees, our communities and our shareholders, said CEO Brian Moynihan. Bank of America shares were trading lower by 3.1 Thursday morning.Morgan Stanley Reports Impressive Profits: Morgan Stanley reported adjusted EPS of 1.96 on 13.4 billion in revenue. Both numbers exceeded analyst expectations of 1.12 and 10.3 billion, respectively. Revenue was up 30 from a year ago.Morgan Stanleys fixed-income trading revenue skyrocketed 170 to 3.03 billion. Equities trading revenue was up 23 from a year ago to 2.62 billion. Both numbers exceeded analyst estimates of 1.81 billion and 2.35 billion, respectively.Investment banking revenue was up 39 to 2.05 billion.View more earnings on BACRising transaction fees help drive a 6 increase in wealth management revenue, which came in at 4.68 billion.The second quarter tested the model and we performed exceedingly well, delivering record results, CEO James Gorman said.Morgan Stanley shares were higher by 0.7. Schwab Misses The Trading Party: Charles Schwab reported second-quarter adjusted EPS of 54 cents, beating analyst estimates by 1 cent. Yet revenue was down 8.6 to 2.45 billion, missing analyst estimates by about 30 million.Schwab wasnt able to capitalize on the boom in trading revenue like the big banks were. The company reported 193 million in trading revenue, missing analyst estimates of 196.8 million.Schwab added 46.6 billion in core net new assets in the quarter, not including its USAA acquisition.Throughout the second quarter, the COVID-19 pandemic and its effects continued to dominate the macroeconomic environment, presenting myriad challenges for our clients and Schwab alike, CEO Walt Bettinger said.Schwab shares traded lower by 3.2.Related Links:Bank Earnings Roundup: Impressive Trading Revenues, Rising Loan LossesHeres Why Wells Fargo Could Suspend Its DividendSee more from Benzinga Why Tesla Margin Requirement Changes Could Be A Buying Opportunity Morgan Stanley Option Traders Bet Millions On 25 Long-Term DownsideC 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved. 