Morgan Stanley's profit jumps as investment banking recovers

Morgan Stanley's profit rose in the second quarter as investment banking activity rebounded on strength in equity and debt underwriting.

Shares of the bank still fell 2% in choppy premarket trading as wealth management revenue rose only marginally, after powering growth through most of 2022 and 2023.

The segment's revenue increased to $6.8 billion in the quarter from $6.7 billion a year earlier, roughly in line with Wall Street expectations, according to LSEG data. Net new assets in the quarter came in at $36 billion.