Morgan Stanley's profit climbed as market volatility buoyed its trading desk, echoing second-quarter results among its Wall Street rivals.

Shares of Goldman Sachs and Morgan Stanley fell Wednesday despite stronger-than-expected profit from the two big banks, as investors saw little reason to bid up equity prices further after gains in recent weeks.

Another three megabanks are due to report second-quarter earnings on Wednesday, shedding light on the health of dealmaking, sales and trading, and consumer activity. Bank of America, Morgan Stanley, and Goldman Sachs—the second-,

Executives at the New York bank said that strategic activity has started to pick up over the last month. Morgan Stanley also reported second-quarter revenue and earnings that beat analysts' expectations.

Morgan Stanley posted second-quarter earnings that topped estimates, powered by higher equities and fixed-income trading revenue.

Global oil inventories have swollen at a rapid clip in recent months, but given the bulk of the increase has been in the Asia-Pacific, prices have been able to hold their ground for now, according to Morgan Stanley.