Morgan Stanley falls short

Morgan Stanley reported earnings of $US0.34 a share. For the investment bank, it represents a miss on forecasted results.

“The volatility in global markets in the third quarter led to a difficult environment, impacting in particular our Fixed Income business and our Asia Merchant Banking business,” CEO James Gorman said in a statement.

The investment bank was expected to report $US0.64 earnings a share, according to analysts surveyed by Bloomberg.

The analysts expected revenues of $US8.55 billion, according to Bloomberg. The bank reported a bottom line miss as well: $US7.8 billion for the third quarter.

Morgan Stanley reported a miss on expectations for fixed income, commodities and currencies business with $US583 million, missing estimates analysts Bloomberg polled who predicted revenue of $US911 million.

Additionally, equity sales and trading revenue was $US1.8 billion, also falling short of analysts’ expectations.

Morgan Stanley shares are down about 12% so far in 2015. The stock is down another 5% heading into the open.

Bank of America, Wells Fargo, and Citigroup each reported earnings that were higher than analysts’ expectations for the third quarter.

Goldman Sachs in contrast missed expectations by some margin, while JPMorgan also missed.

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