Morgan Stanley's third-quarter profit surpassed estimates on an investment banking windfall that had also buoyed its rivals, sending its shares up 2% before the market open. A revival in corporate debt issuance, initial public offerings and mergers has bolstered profits for Wall Street banks this year. As markets hover near record highs and the U.S. Federal Reserve begins its policy-easing cycle, bankers expressed optimism that M&A activity will continue to recover after a two-year drought. Morgan Stanley benefited from a "constructive environment", CEO Ted Pick said in a statement. "Institutional securities saw momentum in the markets and underwriting businesses on solid client engagement." Its investment banking revenue jumped 56% in the third quarter. Competitors Goldman Sachs had posted a 20% surge in fees, while JPMorgan Chase saw a 31% gain.