Morgan Stanley stock rallied to a new record after the bank reported quarterly earnings that beat Wall Street’s expectations. Profit rose 32% to $3.19 billion. That amounted to $1.88 per share, which was better than expected.

Morgan Stanley's profit surpassed estimates on a bumper third quarter for investment banking that had also buoyed rivals, sending its stock to a record. A revival in corporate debt issuance, initial public offerings (IPOs) and mergers has bolstered profits for Wall Street banks this year.

The results cap off a series of earnings from big U.S. banks that showed investment banking businesses are humming again after high interest rates prompted an industry-wide slowdo