Morgan Stanley Profit Tops Wall Street Expectations. The Stock Still Drops.

Morgan Stanley ‘s third-quarter earnings topped Wall Street expectations, but that wasn’t enough to keep the stock from falling shortly after Wednesday’s open. At midmorning, shares of Morgan Stanley (ticker: MS) were down 6.5%, to $75.12, as some investors were disheartened by the bank’s persistent weakness in investment banking. “While the market environment remained mixed this quarter, the firm delivered solid results with an ROTCE of 13.5%,” James Gorman, chief executive at Morgan Stanley, said.