Shares of Morgan Stanley /zigman2/quotes/209104354/composite MS -4.55% surged 2.5% toward a 20-month high in premarket trading Thursday, after the investment bank and broker reported fourth-quarter profit and revenue that rose well above expectations. Net income increased to $2.90 billion, or $1.30 a share, from $1.53 billion, or 80 cents a share, in the same period a year ago. The FactSet consensus for earnings per share was $1.02. Total revenue grew 27% to $10.86 billion, above the FactSet consensus of $9.71 billion. Institutional securities revenue rose 32% to $5.05 billion, beating the FactSet consensus of $4.46 billion. Within trading, equity sales and trading revenue slipped 0.5% to $1.92 billion, just shy of the FactSet consensus $1.93 billion, while fixed income revenue more than doubled (up 126%) to $1.27 billion, beating expectations of $859.0 million. Investment banking revenue rose 11% to $1.58 billion to top expectations of $1.52 billion. The stock has rallied 23.7% over the past three months through Wednesday, while the SPDR Financial Select Sector ETF /zigman2/quotes/209660484/composite XLF -0.19% has gained 9.5% and the S&P 500 /zigman2/quotes/210599714/realtime SPX -0.38% has advanced 10.0%.