Morgan Stanley’s Earnings Fall 41%

Morgan Stanley Dean Witter & Co. reported a 41% plunge in its fiscal third-quarter earnings to $735 million, or 65 cents a share, as a prolonged stock slump cut trading commissions and investment banking fees.

The results for the period ended Aug. 31 were a penny better than analyst expectations. Revenue fell 16% to $5.27 billion.

The firm, which was the largest single tenant in the World Trade Center, said its short-term business outlook turned “decisively negative” after the terrorist attacks as financial markets absorb the impact.

Shares of Morgan Stanley rose $2.46 to $40.08 on the New York Stock Exchange.