INSTANT VIEW: JPMorgan earnings fall, beat forecast

NEW YORK (Reuters) - JPMorgan Chase & Co, the third-largest U.S. bank, said on Thursday that second-quarter profit fell, hurt by hurt by $1.1 billion in write-downs at the investment bank.

Net income fell to $2 billion, or 54 cents per share, from $4.2 billion, or $1.20 a share, a year earlier.

The earnings beat analysts' consensus forecast of 44 cents a share.

The following is reaction from industry analysts and investors:

ACHIM MATZKE, EUROPEAN STOCK INDEXES ANALYST AT COMMERBANK,

IN FRANKFURT

"The reaction is clearly regarding expectations. Through last week, the market got the impression that every bank was in trouble. But now with results coming from JP Morgan, as well as from Wells Fargo yesterday, it looks like these fears were not justified.

"The market was too skeptical about the sector. Now we see that not all the banks are in danger, and it has sparked short coverage on banking stocks all over Europe."

PETER BOOCKVAR, EQUITY STRATEGIST, MILLER TABAK & CO, NEW

YORK, NY.

"JP Morgan is obviously much better positioned in a very tough environment and in light of that tough environment they executed, but overall business is weak for everybody. I think in the short term the banks should stabilize here after the drumming they've taken but I think the environment they're in will continue to be poor and will likely weaken and the banks likely have not seen their ultimate bear market lows."

MIKE LENHOFF, CHIEF STRATEGIST AT BREWIN DOLPHIN IN LONDON

"This is what market needs, following on Wells Fargo, though we can't expect very much from Citi next. Clearly things are bad but it's not as if there's uttter bleakness out there."

DAVID BUIK, STRATEGIST, BGC PARTNERS, LONDON

"JPMorgan has certainly got the best track record in the last year. They seem to be less involved in subprime lending and mortgage-backed securities than any of their peers. Their results today are not only pleasing but not that surprising when you think about it. I think what everybody is waiting is Merrill (Lynch)."

RICK MECKLER, FOUNDER OF LIBERTYVIEW CAPITAL MANAGEMENT,