JPMorgan Chase & Co.'s second-quarter earnings rose 36% on strong investment-banking results, with the profit smashing analysts' expectations like Wall Street titan Goldman Sachs Group Inc. did Tuesday.

Investment banking and a boom in mortgage refinancing were expected to help large U.S. banks offset rising losses from bad loans, but investors are looking for whether troubled loans will continue to rise and whether the refinance boom can last. Credit-loss provisions fell 3.6% from the first quarter at JPMorgan.

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