Investors are ecstatic about JPMorgan and Citi's Q3 results, while Morgan Stanley disappoints.

After the bank stunned investors with a better-than-expected earnings report, JPMorgan Chase & Co. shares increased by 5%.

JPMorgan Chase (NYSE: JPM) announced third-quarter net income of $9.7 billion, or $3.12 per share, down 17% from the same period last year.

However, the company's revenue increased 10% to $32.7 billion. 

FactSet polled Wall Street analysts who predicted the bank will generate $32.12 billion in revenue and earn $2.90 per share.

According to JPMorgan, reduced earnings were caused by a net increase in credit reserves of $808 million as opposed to a net decrease in reserves of $2.1 billion the year before.

However, increased interest rates aided the bottom line by increasing its net interest income by 34% to $17.6 billion.

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Dr. Doom Nouriel Roubini foresees "huge insolvencies and cascading financial disasters" in the coming ten years.