JPMorgan Chase & Co. (JPM) reported a 67 percent jump in first quarter earnings Wednesday on solid growth in investment banking fees and a drop in losses in its credit card portfolio.

The New York bank earned $5.6 billion, or $1.28 per share, compared with $3.3 billion, or 74 cents a share in the same period last year. The profits at JPMorgan, the first bank to report earnings, were way ahead of the $1.15 per share analysts surveyed by FactSet were expecting.

Revenue fell to $25.2 billion from $27.7 billion in the same period last year.

The slump in real estate continued to weigh heavily on JPMorgan's results. The bank increased its provision for mortgage-related losses by $1.1 billion.

Jamie Dimon, the CEO of JPMorgan, said in a statement that the bank's mortgage losses were "extraordinarily high," adding: "Unfortunately, these losses will continue for a while."

JPMorgan (JPM) is one the largest and most diversified bank in the U.S., and offers services such as retail banking, commercial banking, asset management, investment banking, consumer lending and credit cards. Its main competitors include Bank of America (BAC), Wells Fargo (WFC), Goldman Sachs (GS), Deutsche Bank (DB) and Morgan Stanley (MS).

JPMorgan has benefited from a decline in provisions for credit losses that raised operating margins for its retail banking business. However, a weak economic recovery has resulted in a decline in average interest earning deposits and presents a potential concern for the multinational bank.

Barron's is forecasting a 10% rise in stock prices in 2011 led by big cap stocks. They argue that the big caps have lagged the market for the past decade and are now poised to take the lead, as reported by CNBC.com.

Here are their top ten picks for this year: Exxon Mobil (XOM), Walmart (WMT), Pfizer (PFE), JPMorgan Chase (JPM), General Motors (GM), Cisco Systems (CSCO), United Continental Holdings (UAL), Barrack Gold (ABX), Entergy (ETR), and PepsiCo (PEP).

Over the years there have been some strange goings on in the commodity markets. One episode that comes to mind is the attempt by the Hunt brothers of Texas to corner the silver market in the 1970s.

Now we have another strange occurrence. The Financial Times reported that one trader holds 80% to 90% of the copper in the London Metals Exchange (LME) warehouses, valued at about $3 billion. We do know that JPMorgan Chase (JPM) is a big player in the copper market. Whether JPMorgan increased its holdings is not known.

So now, when you thought that Goldman Sachs Group Inc. (GS) was king of the hill, think twice. JPMorgan Chase & Co. (JPM) and Bank of America Corp. (BAC) both racked up perfect trading quarters, according to the Wall Street Journal.

JPMorgan had 12 days where it made more than $200 million each day. Bank of America had at least 25 days where it made more the $100 million from trading in the third quarter.

Massey Energy (MEE) closed up $4.80 to $46.94 on reports that Alpha Natural (ANR) may buy the company, DJ says. December and January 55 calls are active on total call volume of 58K contracts, compared to put volume of 23K puts. November call option implied volatility is at 53 and January is at 48, compared to its 26-week average of 52. Increasing option volume suggests traders are positioning for price movement.

CBOE Volatility Index (VIX) closed down 29 cents to $18.23, near a six-month low after EPS, elections, FOMC meeting and October employment report.

CBOE option volume leaders today: Bank of America (BAC), Las Vegas Sands (LVS) JPMorgan (JPM) and Citigroup (C).

Options Update is by Stock Specialist Paul Foster of theflyonthewall.com.

Now that Republicans have taken control of the House of Representatives, analysts at JPMorgan are taking a look at the election's potential impact on the stock market. In a research note this morning, JPMorgan cited alternative energy issue First Solar (FSLR) as one equity that could be damaged by the GOP's Congressional gains.

"Most of the downside is accounted for by the possibility of fiscally conservative measures, such as budget cuts and the reduction/elimination of certain subsidies," wrote JPMorgan in a note to clients.

Analysts at JPMorgan Securities are recommending that investors initiate long put spreads on Intel Corp. (INTC), according to Doris Frankel of Reuters. The brokerage firm suggests the bearish options trade for shareholders who are looking to hedge their bets on INTC, due to concerns about contracting gross margins.

Specifically, with INTC trading just shy of $20, JPMorgan recommends buying the January 2011 19-strike put and selling the January 16 put. Currently, the January 19 put is asked at $0.63, while the January 16 put is bid at $0.13. At these prices, the long put spread could be initiated for a net debit of $0.50 per pair of contracts.

Bank of America (BAC), which recently announced it would halt foreclosures nationwide, is scheduled to discuss its third-quarter 2010 financial results Tuesday, October 19, in a conference call beginning at 8:30 AM (ET). You can catch a live webcast of the call at the company's website.

During the three months that ended in September, Charlotte, N.C.-based Bank of America continued it mortgage modification efforts and declared a quarterly dividend. Analysts surveyed by Thomson Reuters are looking for the leading lender to report that its earnings for that period were 16 cents per share, compared to a loss of 26 cents per share a year ago. Revenue is expected to total $27.2 billion, which is a 4.3% increase from the same period of last year.

JPMorgan (JPM) closed down 4.1% Friday on mortgage lender practices. November 40 calls are active 8K contracts. November put option implied volatility is at 33, January is at 37, versus its 26-week average of 34, according to Track Data. Large option volume suggests traders positioning for price movement.

Seagate (STX) closed up 18% on reports the company is in acquisition talks with TPG Capital and KKR & Co. (KKR). November option implied volatility is at 45, January is at 38, versus its 26-week average of 46, according to Track Data. Large call volume suggests traders positioning for upside price movement.

Options Update is by Stock Specialist Paul Foster of theflyonthewall.com.

Financial firm JPMorgan Chase (JPM) released its much-anticipated third-quarter earnings Wednesday morning, revealing that its profit increased 23%. JPM earned $4.42 billion, or $1.01 per share, during the quarter -- far better than the $3.59 billion, or 82 cents per share, earned a year ago. Not only did JPM destroy last year's earnings, but the company also handily topped the consensus estimate of 90 cents per share.

One reason for the stronger-than-expected results is the fact that JPM set aside $1.55 billion for retail credit losses in the quarter compared to $3.99 billion a year ago. That said, CEO Jamie Dimon warned that loan losses are still high in the mortgage and credit card portfolios, but these losses aren't continuing to rise as they did during the recession. Dimon added that JPM is expecting losses in the credit-card division during the next quarter.

Analyst Upgrades

• Piper Jaffray upgraded Salesforce.com (CRM) to overweight from neutral, citing valuation following the recent sell-off and strong business trends. The firm has a $115 price target for shares.
• Keefe Bruyette upgraded M&T Bank (MTB) to market perform from underperform on valuation after AIB sold its stake in the company. The firm has a $72 price target for shares.
• Jefferies upgraded OGE Energy (OGE) to buy from hold following the announcement that ArcLight will purchase 9.9% of OGE's interest in Enogex for $183M and believes this deal highlights the hidden value associated with Enogex. The firm raised its price target to $51.50 from $43.
• Thomas & Betts (TNB) was upgraded to outperform from perform at Oppenheimer.
• Bayer (BAYRY) was upgraded to buy from neutral at UBS.
• Texas Roadhouse (TXRH) was upgraded to outperform from neutral at Baird.

Analysts at JPMorgan are recommending call options for anxious investors in First Solar (FSLR), according to a note to clients released this morning. Specifically, the brokerage firm said that shareholders who've grown skeptical with lower earnings from First Solar might want to consider replacing their shares with call options.

With FSLR currently trading near $125, the firm is recommending that clients swap out their stock for December 125 calls. These intermediate-term options will cost you about $14.30, at last check, which means that FSLR must rise above $139.30 prior to December expiration before you'll begin seeing profits.

Analysts at JPMorgan are bullish on Netflix (NFLX) -- two option strategists with the firm recommended a spread strategy that will profit only if NFLX continues its quest for new all-time highs during the near term.

Specifically, Amyn Bharwani and Marko Kolanovic suggested that traders simultaneously buy September 120 calls and sell September 110 puts. This trade is known as a "collar" when the investor owns the underlying shares, but it's considered a "risk reversal" when played separately from a stock investment.

Analyst Upgrades

• UBS upgraded JPMorgan (JPM) to buy from neutral and has a $50 price target on the stock. The firm cites valuation for the upgrade.
• Morgan Joseph upgraded Deere (DE) to buy from hold, citing strong U.S. demand for combines and tractors, favorable fundamentals in Brazil, and expectations for improved domestic construction-equipment demand. The firm has a $75 price target on the stock.
• Wells Fargo upgraded Venoco (VQ) to outperform from market perform to reflect increased confidence in the company's Monterey Shale potential.
• GlaxoSmithKline (GSK) was upgraded to buy from hold at Jefferies.
• Tenet Healthcare (THC) was upgraded to positive from neutral at Susquehanna.
• Agnico-Eagle (AEM) was upgraded to outperform from sector perform at RBC Capital.