|Bid||115.13 x 900|
|Ask||115.14 x 1300|
|Day's Range||113.29 - 115.23|
|52 Week Range||91.11 - 119.24|
|Beta (3Y Monthly)||1.15|
|PE Ratio (TTM)||12.37|
|Earnings Date||Oct 15, 2019|
|Forward Dividend & Yield||3.60 (3.16%)|
|1y Target Est||118.80|
Goldman Sachs is the third of Wall Street's bulge-bracket banks to report Q2 earnings this week.
JPMorgan Chase, the largest U.S. bank by assets, reported earnings for the second quarter on Tuesday that surpassed analysts’ expectations.
Citigroup beat estimates with some help from its consumer cards business and a trading platform's IPO, but can other big banks rely on the same help in their earnings this week?
Curious what investors need to keep a close eye on when it comes to JPMorgan Chase's Earnings report? Here's what Jim Cramer is watching.
The bank’s shares initially traded lower Tuesday morning, but were up 42 cents at $114.32 in mid morning. The early losses came as investors reacted to news that (JPM) reduced its forecast for 2019 net interest income to about $57.5 billion, below the guidance of $58 billion it issued when it disclosed its first-quarter earnings. The scaled-back forecast reflects the impact of anticipated rate cuts by the Federal Reserve.
The Zacks Analyst Blog Highlights: JP Morgan, UnitedHealth, Lockheed Martin and BHP Billiton
(Bloomberg Opinion) -- Heading into this earnings cycle for the biggest U.S. banks, analysts were already plenty worried about net interest income, which is how much the firms make from customers’ loan payments compared with what they pay on deposits. After all, long-term interest rates have plummeted since the end of last year amid signs of slowing global growth and the Federal Reserve indicating it would soon be cutting its benchmark lending rate.It turns out they weren’t quite concerned enough.On Monday, Citigroup Inc. disclosed a net interest margin that disappointed analysts, which raised doubts that JPMorgan Chase & Co. and Wells Fargo & Co. could meet expectations. That’s precisely what happened: JPMorgan, the largest U.S. bank, cut its full-year outlook for net interest income by $500 million. At Wells Fargo, which already lowered its net interest income guidance for the year in April, it fell 4% to $12.1 billion, below even the lowest estimate.JPMorgan Chief Executive Officer Jamie Dimon, in his typical style, brushed off the revised net interest income estimate of $57.5 billion. It could be higher or lower depending on how many times the Fed lowers interest rates (the bank was expecting no cuts during the last round of earnings). Net interest income “is like the wind blowing” Dimon insisted, adding that it’s more useful to focus on long-term measures like the number of accounts and deposit growth.That may be, but it matters to investors when the wind is blowing firmly in one direction. When pressed on a conference call with analysts, JPMorgan Chief Financial Officer Jennifer Piepszak described a range of outcomes that could have the Fed dropping interest rates from one to three times in 2019. If the central bank cuts more than once, net interest income could possibly fall to below $57.5 billion, she said.In more normal times, the Fed beginning a cycle of monetary easing wouldn’t be too painful for banks because they could just lower short-term deposit rates in tandem with long-term rates. But these are far from normal times. Chase Premier Savings interest rates are still next to nothing, for example, just like other big institutions. Simply put, banks got away with keeping deposit rates near zero in recent years because consumers became accustomed to getting paid nothing on their savings in the wake of the financial crisis. That led to blockbuster profits as benchmark U.S. Treasury yields rose to multi-year highs, which in turn boosted the amount earned on loans. But that leaves less flexibility on the way down.It’s worth reiterating this point because the Treasury yield curve is often seen as a clear-cut way to gauge the health of banks, and it steepened recently after Fed officials made clear their plan to lower interest rates later this month. But when deposit rates are far more sticky near zero than the fed funds rate, it all comes down to long-term yields. That means margins are compressing fast.Wells Fargo, for its part, is apparently feeling the squeeze on both sides. The drop in net interest margin from the prior quarter was due to “balance sheet mix and repricing, including the impacts of higher deposit costs and the lower interest rate environment,” the bank said in its statement.Of course, it’s not all bad news for banks if interest rates are falling, provided that the Fed successfully prolongs the longest economic expansion on record. As of now, the consumer remains steadfastly strong: On Tuesday, June retail sales showed a 0.4% monthly gain, easily beating estimates for a 0.2% advance.Earnings from JPMorgan and Wells Fargo tell the same story. JPMorgan’s consumer and community banking unit generated $4.2 billion in net income in the second quarter, a 22% increase compared with the same period in 2018. Wells Fargo’s second-quarter provision for credit losses was just $503 million, compared with estimates for about $773 million, in a signal that it expects resiliency from its clients in the months ahead.Still, this round of bank earnings shows there are few easy-money opportunities for these Wall Street behemoths. Just as they’ve shown they can’t count on traders to deliver large profits when central banks are suppressing volatility (perhaps with the exception of Goldman Sachs Group Inc.), they’re also going to have to prepare for a world awash in lower interest rates.To contact the author of this story: Brian Chappatta at firstname.lastname@example.orgTo contact the editor responsible for this story: Daniel Niemi at email@example.comThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Brian Chappatta is a Bloomberg Opinion columnist covering debt markets. He previously covered bonds for Bloomberg News. He is also a CFA charterholder.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.
Despite its second-quarter earnings beat, JPMorgan Chase (JPM) was trading about 1.6% lower in the premarket session on Tuesday.
JPMorgan is Real Money's Stock of the Day. The financial giant reported earnings this morning, beating on both the top and bottom line. TheStreet's Jacob Sonenshine breaks down what investors need to know....
JPMorgan reported better-than-expected second-quarter earnings early Tuesday, helped by an income tax boost. Goldman Sachs and Wells Fargo also beat.
Announcement: Moody's Fully Supported Municipal& IRB Deals. Global Credit Research- 15 Jul 2019. New York, July 15, 2019-- ASSIGNMENTS:.
Shares of Goldman Sachs Group Inc. surged 2.3% in morning trading after big second-quarter profit and revenue beats, with the price gain enough to keep the Dow Jones Industrial Average in positive territory. The stock rose $4.88, which would add about 33 points to the Dow's price, which is up 7 points. For the other Dow earnings reporters, J.P. Morgan Chase & Co.'s stock slipped 41 cents, or 0.4%, and Johnson & Johnson shares gave up $1.60, or 1.2%; combined, those declines would shave about 14 points off the Dow's price.
(Bloomberg) -- JPMorgan Chase & Co. was hit by the Federal Reserve’s about-face on interest rates in the second quarter, warning that lending income will fall in the second half.The largest U.S. bank on Tuesday cut its full-year outlook for net interest income -- revenue from customers’ loan payments minus what the bank pays depositors -- by $500 million. NII accounted for about half the New York-based company’s revenue last year and has countered a slump in trading, which fell for a fourth straight period in the second quarter.JPMorgan joins rivals including Wells Fargo & Co. in cutting the outlook for traditional lending businesses that have benefited from higher rates, which they passed on to borrowers while holding deposit rates low. Fed Chairman Jerome Powell last week opened the door to a July cut in interest rates, citing a cooling global economy and trade friction. It’s a reversal from the start of the year, when investors were betting the Fed would boost rates.Chief Executive Officer Jamie Dimon said worsening prospects for interest income won’t affect the bank’s expansion and investment plans.“NII is like the wind blowing,” Dimon said on a call with journalists. “We’re opening branches, that is not the wind. That is serious expansion of business -- of course we can’t predict the future any better than you can.”Jennifer Piepszak, speaking publicly for the first time in her new role as chief financial officer, said net interest income might decline by as much as $150 million in the third quarter compared with the previous quarter, assuming the Fed cuts interest rates three times this year. She said the number could fall by more than that in the last three months of the year.JPMorgan notched the highest profit in U.S. banking history in 2018, at $32.5 billion, spurred in part by rising interest rates and the Trump administration’s corporate tax cuts. The bank now sees net interest income at about $57.5 billion this year after saying in April it could increase to more than $58 billion.Shares of the company, which climbed 17% this year through Monday, fell 0.3% at 9:49 a.m. in New York trading.Wells Fargo & Co. said Tuesday that its net interest income fell to the lowest level since 2016. At Citigroup Inc., net interest revenue increased 2% in the second quarter, the bank said Monday as it left its full-year growth outlook for the figure unchanged at 4%.JPMorgan’s revenue from stock and bond trading slipped 6% in the second quarter, excluding a one-time gain related to the initial public offering of Tradeweb Markets Inc. Analysts had expected a 5% drop. Fees from underwriting stock and bond offerings and advising on mergers fell 14% to $1.85 billion.Revenue from the corporate and investment bank slipped 3% from last year’s record to $9.6 billion as market uncertainty drove investors to the sidelines and damped corporate sentiment.Non-interest expense rose by 2% to $16.3 billion in the quarter, less than the average analysts’ estimate of $16.4 billion. The bank said in February that adjusted expenses for the full-year would rise to less than $66 billion from about $63 billion last year.JPMorgan has been ramping up spending as it expands its consumer bank into new states for the first time in more than a decade, uses technology to transform how its corporate and investment bank does business, and constructs a new headquarters in New York.Other insights from the report:The firm’s consumer bankers continue to outperform their Wall Street counterparts, posting a 22% increase in net income in the quarter. Dimon said the bank continues to see positive momentum with the U.S. consumer, citing “healthy confidence levels, solid job creation and rising wages.”The bank said that while its rates-trading business held up well during the quarter, there was reduced client activity in equity derivatives and weakness in the fixed-income EMEA business.Net charge-offs at the bank increased to $1.4 billion from $1.3 billion last year.(Updates with Dimon’s comment in fourth paragraph, Wells Fargo NII in eighth paragraph, CFO explanation of interest income decline in sixth paragraph.)To contact the reporter on this story: Michelle F. Davis in New York at firstname.lastname@example.orgTo contact the editors responsible for this story: Michael J. Moore at email@example.com, Steve Dickson, Daniel TaubFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Stocks opened to thin losses Tuesday. Goldman Sachs and Johnsoin & Johnson split the Dow Jones index, ahead of a busy day for FANG stocks on Capitol Hill.