Morgan Stanley earnings fall 10% but beat lowered Wall Street expectations

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Trading revenue rises 10%, but investment banking remains weak amid a dearth of deals

Morgan Stanley on Wednesday said its third-quarter profit fell 10% amid weakness in its investment banking business, but its trading and asset management revenue rose.

Morgan Stanley’s stock fell 4.4% in the third quarter in a choppy period for bank stocks overall. The stock is down just under 10% in the past month, compared with 1.9% drop by the S&P 500 SPX.Asset management revenue increased by 6% to $5.03 billion, while investment banking revenue dropped 24% to $1.05 billion.

During the past month, 11 analysts cut their profit estimates for Morgan Stanley and only one increased their view.

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