Morgan Stanley Shares Surge 6% After Strong Earnings and Record Quarterly Revenue

Core Insights - Morgan Stanley's shares increased over 6% intra-day following strong third-quarter results that exceeded expectations, driven by a recovery in dealmaking and record revenue [1] Financial Performance - The bank reported a net income of $4.61 billion, or $2.80 per share, significantly surpassing consensus estimates of $2.11 per share [1] - Net revenue reached $18.22 billion, well above the expected $16.64 billion [1] Revenue Breakdown - Investment banking revenue surged 44% year-over-year, attributed to increased merger activity and initial public offerings after a period of weakness due to tariff uncertainties [2] - Trading revenue rose 6.5% sequentially and 24.5% year-over-year, totaling $6.29 billion [2] - Wealth management revenue increased by 13% to $8.2 billion [2] Market Conditions - Improved clarity around trade policy and recent interest rate cuts by the Federal Reserve have revitalized corporate transactions, enhancing advisory and capital market fees [3] - All major business lines contributed to the growth, resulting in a record performance for the third quarter [3]