Morgan Stanley Reports Profit Rise

Shares drop

Equity sales, underwriting and wealth management helped power Morgan Stanley to a 42 percent jump in second-quarter profit, the firm announced on Thursday, continuing a streak of better-than-expected results from Wall Street investment banks.

In the wake of the strong quarter, Morgan Stanley also announced a $500 million stock buyback, which may help boost its stock price. The firm also announced that it had completed the purchase of its remaining 35 percent stake in the Morgan Stanley- Smith Barney joint venture.