Morgan Stanley's stock grows after earnings and sales soar above expectations

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<pre><pre>Boeing, Travelers' losses have contributed to Dow's 75-point decline

Morgan Stanley shares

MRS, + 6.61%

rose 2.5% to a 20-month high in premarket trading on Thursday after the investment bank and broker reported fourth-quarter earnings and earnings that were well above expectations. Net income increased to $ 2.90 billion, or $ 1.30 per share, from $ 1.53 billion, or 80 cents per share, in the same period last year. The FactSet consensus for earnings per share was $ 1.02. Total revenue increased 27% to $ 10.86 billion, exceeding the FactSet consensus of $ 9.71 billion. Institutional securities income increased 32% to $ 5.05 billion, exceeding the FactSet consensus of $ 4.46 billion. Within trading, share sales and trading revenues declined 0.5% to $ 1.92 billion, just below the FactSet consensus of $ 1.93 billion, while income from fixed income decreased $ 1.27 billion more than doubled (up 126%) and exceeded expectations of $ 859.0 million. Investment banking revenues increased 11% to $ 1.58 billion to exceed expectations of $ 1.52 billion. The stock rose 23.7% in the past three months to Wednesday, while the SPDR Financial Select Sector ETF rose

XLF, + 0.88%

has gained 9.5% and the S & P 500

SPX, + 0.84%

has advanced by 10.0%.