- JPMorgan stock sails ahead on an impressive Q3 showing.
- GAAP EPS arrives 10% above Wall Street consensus.
- Revenue benefits from investment banking, wealth management fees.
- Traders focus on setting new all-time high.
JPMorgan (JPM) stock surged over 5% on Friday after the nation’s largest bank released earnings that strongly beat consensus.
The Producer Price Index (PPI) for September was released before the market open, and it was not the signal the market desired. The annual inflation figures for both headline and core PPI arrived above consensus. In the case of annual core PPI, inflation rose above the August figure, even though the latter was revised upward.
The Dow Jones Industrial Average (DJIA), of which JPMorgan is a primary member, led other major US indices at the start of Friday trading. The DJIA is up 0.8% at the time of writing, while the NASDAQ rises 0.3%.
JPMorgan stock news
JPMorgan, managed by CEO Jamie Dimon, earned $4.37 in GAAP income per share, which was more than 10% above consensus from Wall Street. The figure was helped by higher fees from investment banking and wealth management but was hurt by higher credit provisions due to rising write-offs in its credit card business. Also, $6 billion in share buybacks (about 1% of outstanding) during the quarter pushed the figure higher.
Revenue in the third quarter rose 7% from a year ago to $42.65 billion, beating consensus by nearly $1.3 billion.
Deposits and total loans rose meagerly from a year ago, but investment banking fees rose 31% YoY, while asset management fees gained 15% in that period. Car loans rose 11% YoY in Q3. Fixed income revenue remained flat from a year prior, while equity market revenue rose 27%.
Looking ahead, CFO Jeremy Barnum said that Q3’s $23.5 billion in net interest income would likely drop to $22.9 billion in Q4 due to the yield curve.
Based on the declining yield curve, which is changing due to the Federal Reserve cutting interest rates, Barnum predicted that the bank would see a pullback in net interest income until it levels off in the middle of 2025.
When asked about Wall Street’s 2025 consensus of $87 billion for net interest income, Barnum said it was “in the ballpark” but was toward the top end of what is possible.
JPMorgan stock forecast
JPMorgan stock is closing in on a new all-time high. The existing one came on August 30 at $225.48, and JPM stock was less than a Dollar from reaching it earlier in the session.
The Fibonacci extensions give traders a key as to where they can aim for. Right now, JPM stock trades near the 161.8% Fibo at $224.31. The 261.8% Fibo sits at $236.65, and the 361.8% sits at $248.99.
The 100-day Simple Moving Average (SMA) has worked as decent support on many occasions over the past two years. On Friday, it trends a little above $207.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
