NEW YORK (AP) -- Morgan Stanley's earnings dropped 42 percent in the third quarter, more than analysts forecast, as the bank's bond trading business weakened.
The New York-based investment bank and wealth advisory firm earned $940 million excluding payments to preferred shareholders for the three-month period ending in September, compared with $1.63 billion a year earlier.
The bank earned 48 cents per share, compared with 84 cents a year earlier. Analysts were looking for Morgan Stanley to earn 67 cents per share, according to FactSet.
Morgan Stanley's revenue was $7.8 billion, excluding an accounting adjustment, compared with $8.9 billion the year before.
Morgan Stanley shares sank $1.85, or 5 percent, to $32.10 in pre-market trading.