UPDATE: Morgan Stanley Posts Upbeat Q2 Earnings, Shares Surge

Shares of Morgan Stanley

jumped around 1.5% in pre-market trading after the bank reported better-than-expected results for the second quarter. The bank's quarterly profit jumped 47% to $1.9 billion, or $0.94 per share, from a year-ago profit of $1.0 billion, or $0.43 per share. Its adjusted earnings from continuing operations excluding DVA came in at $0.91 per share. However, its earnings excluding DVA and tax benefit were $0.60 per share. Its revenue rose to $8.6 billion, from $8.52 billion. Its adjusted sales came in at $8.52 billion. However, analysts were expecting earnings of $0.55 per share on revenue of $8.22 billion. The bank's wealth management revenue came in at $3.7 billion for the quarter, while investment management net revenue came in at $692 million. Institutional Securities reported net revenue of $4.2 billion down from $4.4 billion. Its fixed income and commodity revenue dropped 20% to $1 billion versus $1.2 billion. James P. Gorman, Chairman and Chief Executive Officer, said, “Our quarterly results demonstrated solid performance, despite a muted operating environment.” Morgan Stanley shares gained 1.48% to $32.98 in pre-market trading.