Morgan Stanley profit jumps, tops forecasts

Morgan Stanley says its second-quarter net income jumped to $1.58 billion, easily topping forecasts as its Smith Barney brokerage helped the bank recover from a loss a year ago.

Morgan Stanley joined other banks in reporting that its trading revenue fell from the first quarter, the result of the stock market's spring plunge. But the company, which was hurt a year ago by a conservative trading strategy, was able to beat analysts' overall revenue and profit expectations for this latest quarter.

Morgan Stanley's earnings available to common shareholders rose to $1.09 per share from a loss of $1.10 per share a year earlier, when it lost $1.26 billion.

Earnings from continuing operations, which excludes special one-time charges, was 80 cents per share. Revenue jumped 53 percent to $7.95 billion.

Analysts polled by Thomson Reuters forecast earnings of 46 cents per share on revenue of $7.93 billion.

Shares are up 68 cents, or 2.7 percent, at $25.90 in pre-opening trading.