SURPRISE: Morgan Stanley reported earnings that beat analysts' expectations. Business grew across the company. The bank's stock jumped almost 8 percent.

MAKEOVER: Morgan Stanley is rejiggering its business model to give more attention to business units that deal with individual investors. It plans to buy the remaining stake of retail brokerage Morgan Stanley Smith Barney by the end of the year.

PINK SLIPS: Banks are trying to cut expenses to boost earnings. Morgan Stanley trimmed about 4,500 jobs, or 7 percent of its workforce, over the year. Bank of America, Citigroup, Goldman Sachs and JPMorgan Chase have also reduced staff.