In order to create a .jar file, you need to use jar instead of java:
jar cf myJar.jar myClass.class
Additionally, if you want to make it executable, you need to indicate an entry point (i.e., a class with public static void main(String[] args)) for your application. This is usually accomplished by creating a manifest file that contains the Main-Class header (e.g., Main-Class: myClass).
However, as Mark Peters pointed out, with JDK 6, you can use the e option to define the entry point:
jar cfe myJar.jar myClass myClass.class
Finally, you can execute it:
java -jar myJar.jar
See also
Creating a JAR File
Setting an Application’s Entry Point with the JAR Tool
Sine you’ve mentioned you’re using Eclipse… Eclipse can create the JARs for you, so long as you’ve run each class that has a main once. Right-click the project and click Export, then select “Runnable JAR file” under the Java folder. Select the class name in the launch configuration, choose a place to save the jar, and make a decision how to handle libraries if necessary. Click finish, wipe hands on pants.