Morales' three-run blast came in the seventh inning, blunting a would-be New York comeback and lifting Los Angeles to a win in the rubber match of a three-game series at Angels Stadium.
Morales notched three hits and scored twice while Bobby Abreu hit a solo home run for the Angels, who have gone 8-4 over their last 12 games following a horrible 2-6 start.
Starter Scott Kazmir (2-1) got the win after allowing four runs on three hits and four walks over 5 1/3 innings.
The Yanks got a two-run homer from Jorge Posada and Robinson Cano added a bases-empty shot in the defeat.
Wisconsin business offering 'therapeutic cuddling' forced to close
Costly malfunction causes beer flood at Boston-area brewery