JPMorgan Chase came in with better-than-expected earnings, propelling the stock near record highs. Will it go higher?
Banks were supposed to be dead money after the financial crisis of 2007-2008, Dodd-Frank regulations, and the upcoming Basel III rules.
Then, something funny happened: JPMorgan Chase came in with better-than-expected earnings, propelling its shares to record highs. Revenues for the quarter were $26 billion, up 13% from the previous year. Earnings for the same period were $6.5 billion, up from last year’s $5 billion profit.
What’s more, the company’s trading revenues were up 18%. That’s from a company that a year ago saw one of its traders, Bruno Iksil (known as “The London Whale”) lose nearly $6 billion.
Speaking with CNBC’s Jim Cramer on this morning’s “Squawk on The Street”, JPMorgan’s CEO Jamie Dimon said:
“We don’t do real prop trading. Most of our business is client-driven trading. And, our hope when the Volcker Rule is finished, we can continue to do all the things we do for clients. We deal with 16,000 clients around the world. They come to us because we give them great prices, research, execution and that’s good for the investor and the issuer.”
So, how much higher can this bank go?
We ask John Stephenson, senior vice president and portfolio manager at First Asset Management, to look at JPMorgan’s fundamentals and CNBC contributor Abigail Doolittle, Technical Strategist at The Seaport Group, to look at the company’s charts.
To hear where Stephenson and Doolittle think JPMorgan Chase will go next, watch the video above.
[Disclosures: Stephenson and First Asset Investment Management own JPMorgan Chase shares.]