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JPMorgan stock falls, Apple’s production cut may delay end of semi cycle

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Yahoo Finance’s Jared Blikre reports on the day's trending tickers.

Video Transcript

ALEXIS CHRISTOFOROUS: Let's check in with Jared Blikre now for a closer look at some stocks that are trending today. And Jared, we know the banks now out or starting to come out with their earnings reports. JPMorgan Chase among the first. On its face, the report was very strong and beat estimates, yet the stock is getting punished. Why? Think you're muted, Jared.

JARED BLIKRE: We got those CPI prints this morning. Jamie Dimon was kind of dismissive of the inflation story, saying that the consumer is strong, and just kind of emphasizing some of the better aspects of the economy, and really, the economy's growth, which he said is a good thing. Also, investment banking was really a bright spot for them. We know that we're in a mergers and acquisition boom. Trading-- their trading was a little bit weaker, given the same period last year. And that's because of the lower volatility in the market.

Now, there was some focus on his acquisition strategy. This is Jamie Dimon outlining a 10-year plan, basically, to acquire fintech and other things to enhance their digital offerings to customers. And with respect to the pandemic, Dimon and his CFO, they both said they're hopeful that the pandemic will become endemic by next year. I think everybody hopes that it will be a no-demic.

And I do have some analysts' commentary from the Street. First is Baird, and here's a quote. Overall, we felt that JPMorgan posted a solid quarter with slightly better than expected revenue and favorable credit trends, saying that the stock may see muted gains today, as expectations were already riding high, hitting earnings. That was before the stock has posting the losses that we're now seeing before us.

Finally, Credit Suisse saying JP Morgan has kicked off reporting season, setting a clearly positive tone for what a bank that executes can deliver. But nevertheless, even after coming off of record highs only last week or perhaps even Monday, this stock is down about 2 and 1/2% today and just kind of leading the entire banking sector lower, as you can see on your screen.

ALEXIS CHRISTOFOROUS: Yeah, lots of red there. You know, I talked earlier about a bounceback in big tech. But Apple is not participating in that. What's behind that stock moving lower today?

JARED BLIKRE: That's right. Not as many iPhones are going to be able to produce as we thought before, going from 90 million to 80 million. And that is a material drop of 10 million. You can see on the NASDAQ 100 in the upper left, Apple is quite the standout, down half a percent, although it had been down a bit more today. You can see off of the lows from about 11:30 AM.

And I do have some notes from the Street on this. Credit Suisse saying the fact that Apple is having issues procuring enough semiconductors is meaningful, as it should underline the extent of supply shortages and perhaps provide some comfort that the semi cycle is not at risk [INAUDIBLE] and despite what is clearly some restocking across the supply chain.

But taking an opposite-- or I guess, a different-- little take here is Truist Securities. They're saying news of more shortages are, quote, completely unsurprising and confirms our extended peak cycle view. That Apple is seeing shortages is somewhat surprising, as it is the biggest customer in the supply chain and it, quote, "operates in the consumer end market with very short product cycles, where missed shipments result in demand destruction."

So, nevertheless, Apple down about half a percent today. They did in the-- excuse me, in the Bloomberg report that dropped the story, they did signal that Broadcom and also Texas Instruments were some of the causes of those supply deficits. And we can see those two stocks down as well in our semiconductor board. Texas Instruments down about 1/3 of a percent and Broadcom down just about 18 basis points at the lower end of your screen.