Updated from 8:40 a.m. ESTJ.P. Morgan Chase ( JPM), the nation's second-largest bank, threw cold water on the recent enthusiasm for financial stocks Wednesday, reporting disappointing fourth-quarter earnings. Elsewhere, Wachovia ( WB), the nation's fifth-largest bank, said it plans to cut up to 4,000 jobs by 2007. Profit at New York-based J.P. Morgan fell 11% from a year ago, due mainly to a $650 million charge stemming from its acquisition of Bank One. In the quarter, J.P. Morgan Chase earned $1.67 billion, or 46 cents a share, compared with $1.86 billion, or 89 cents a share, in the year-ago period. Last year's figures did not include results from Bank One's operations. The earnings-per-share comparison with a year ago was impacted by J.P. Morgan's issuance of stock to finance the Bank One deal. In early trading, the stock was down 46 cents, or 1.2%, to $37.94. On an operating basis that excludes a hefty charge stemming from the $58 billion merger with Bank One, J.P. Morgan reported earnings of $2.3 billion, or 64 cents a share. Using that earnings metric, the big bank fell 4 cents short of the Thomson Financial consensus per-share estimate. J.P. Morgan also fell short of analyst estimates on revenue. In the quarter, net revenue was $12.95 million, compared to the analyst estimate of $13.3 billion. On Tuesday, in the wake of a positive earnings announcement from Bank of America ( BAC) and several other banks, investors had bid up J.P. Morgan shares 1.6% to $38.40, on the expectation of more good earnings news to come. Wednesday's numbers are likely to disappoint. Even J.P. Morgan executives expressed some displeasure in the earnings release. "Operating results for the fourth quarter improved from the third quarter, but still reflected mixed performance,'' said William Harrison Jr., the bank's chairman and chief executive.