$JPMorgan Chase(JPM.US)

Context: JPMorgan Chase, the diversified banking and capital-markets group , disclosed a $658 million investment-securities loss yesterday during earnings. That charge shaved $0.18 off earnings per share. It dented the headline result, but the bigger question is how much earnings power the bank's core businesses can keep delivering. Third-quarter net income totalled $15.31 billion, with diluted EPS of $5.57. Managed revenue climbed 8% to $50.91 billion, while asset and wealth management brought in $263 billion of net client-asset inflows. Those are substantial numbers. Still, Reuters reported that profit fell short of expectations as underwriting and fixed-income trading delivered softer results. A broad franchise gives JPMorgan several engines, but investors still expect them to pull their weight.

My Trade: Decent earnings, though results were slightly muted compared to previous earnings. Still I would continue holding as it is one of, if not the most resilient traditional banks in US.

Takeaway: Wealth inflows could support future fees, provided those assets stay invested. Lending and deposits also matter if capital-markets activity loses momentum. JPMorgan has the scale to absorb a weak revenue line. At this price, investors need that scale to translate into sustained earnings growth. Most analysts stoll rate JPMorgan a Buy right now. @Captain's Treasure