Morgan Stanley reported better-than-expected adjusted earnings for the third quarter as it boosted revenue from trading bonds, long a sore spot for the investment bank. Income from continuing operations hit $561 million, or 28 cents per share, compared with $64 million, or two cents per share, a year earlier. On that basis, analysts had been expecting 24 cents per share. The main driver of the higher adjusted earnings were improvements in its institutional securities business, which includes trading and investment banking. Pre-tax income in that business, excluding debt valuations, was $345 million, compared with $37 million a year ago.
