(Updated from 9:26 a.m.)

Goldman Sachs

this morning cut fourth-quarter forecasts on brokerages

Lehman Brothers

( LEH),

Morgan Stanley Dean Witter

( MWD) and

Merrill Lynch

( MER).

Goldman said that while equity trading is a "bright spot," with surges in volume and volatility, the lack of primary market volume could result in lighter revenue for the companies. It cut forecasts for the companies about 9%.

Lehman's fourth-quarter earnings per share was cut 16 cents to $1.20; Morgan Stanley was lowered 11 cents to $1.20 and Merrill was decreased 6 cents to 80 cents.

Brokers have been on a wild ride lately, rising pretty steadily since June, tumbling earlier this fall, and lately climbing back.

Solomon Smith Barney

followed Goldman's lead, but also included Goldman

(GS) - Get Report

in the fourth-quarter cuts. Solly reduced Morgan Stanley's fourth-quarter EPS view to $1.42 from $1.55 and Lehman's to $1.31 from $1.38 a share. Goldman Sachs was knocked down to $1.35 from $1.55 a share.