Morgan Stanley Posts 51% Earnings Gain

Morgan Stanley Dean Witter, Discover & Co. reported earnings of $678 million, or $1.11 a share, for the third quarter, up 51% from the same period a year ago. The results exceed the 96 cents a share Wall Street analysts had expected, according to First Call, which tracks such estimates. For the 1996 quarter, when investment bank Morgan Stanley and retail broker and credit card company Dean Witter were still separate companies, the two had a combined net income of $450 million, or 72 cents a share. Based on the Dean Witter results, analysts expect other brokerages with quarters ending in September to report very good earnings. Morgan shares closed at $55.94, down 50 cents, on the NYSE.