Merrill Lynch is on a roll. On top of its huge one-time gain from its BlackRock deal, Merrill generated real excitement over its recurring earnings. Even excluding the deal, Merrill would have reported $2 per share vs. the $1.47 expected by analysts. The only tepid-growth unit was investment banking, which was expected. So it has followed in the footsteps of other top investment banks this quarter. CEO Stanley O'Neal's bid to diversify Merrill's earnings away from its own mutual funds and brokerage activity seems to be paying off. Jumping on the private equity steam roller has certainly helped.

For more on Merrill:
- Here's an AP update
- More on Merrill's latest activities. Article