JPMorgan & Chase & Co. (NYSE: JPM)
JPMorgan & Chase Earnings
This morning before the market opened JPMorgan & Chase (JPM) announced earnings that topped analyst expectations and gave the shares a boost in the premarket session. The company announced earnings to the tune of $1.32 per share on $23.75 billion in revenues while analyst were expecting $1.25 per share on $22.89 billion in revenues. This is roughly a 10% increase from the same period last year where they announced earnings of $1.19 per share on $4.93 billion in profit. Banks in general are all looking to open positive based on this earnings and this sector should be a good one for 2016 as the Fed raised interest rates and looks to do it again this year. Keep an eye on this stock for 2016 as we should see it reach into the $70s.
CEO Comments
“We had a good quarter as 2015 came to a close,” Chief Executive Officer Jamie Dimon said in a statement. “The businesses generated strong loan growth and credit quality, except for some stress in energy. The consumer business continues to gather deposits, outpacing the industry.” (TheStreet)
JPM Technicals
JPM, like most stocks this year, has had a rough start down roughly 10% in 2016 but after this earnings beat we should get a nice pop in price. After closing yesterday at $57.34, shares are looking to gap up and give investors a nice relief from the selling thats recently took place. We should see some support come in at $56.91 and the $55 levels while resistance will be met at the $59.67, $60 and $62 levels. Currently shares are looking to open around the $59.50 level so we’ll have to see how it acts at the open for a possible trade. Looking back on the daily chart you can see that shares have been on a nice trend but has had some trouble in the $70 range as its topped out twice there. Currently analysts have an average price target of $72.89.
Company Profile
JPMorgan Chase & Co. is a financial holding company that provides financial and investment banking services. It offers a range of investment banking products and services in all major capital markets, including advising on corporate strategy and structure, capital-raising in equity and debt markets, sophisticated risk management, market-making in cash securities and derivative instruments, prime brokerage and research. It also offers investment banking, financial services for consumers, small business and commercial banking, financial transaction processing, asset management and private equity. The company operates its business through the following segments: Consumer and Community Banking, Corporate and Investment Bank, Commercial Banking, Asset Management, and Global Finance & Treasury. The Consumer and Community Banking segment serves consumers and businesses through personal service at bank branches and through ATMs, online, mobile and telephone banking. It is organized into Consumer and Business Banking, Mortgage Banking (including Mortgage Production, Mortgage Servicing and Real Estate Portfolios) and Card, Merchant Services and Auto (‘Card’). Consumer and Business banking offers deposit and investment products and services to consumers, and lending, deposit, and cash management and payment solutions to small businesses. Mortgage Banking includes mortgage origination and servicing activities, as well as portfolios comprised of residential mortgages and home equity loans, including the purchased credit impaired portfolio acquired in the Washington Mutual transaction. Card issues credit cards to consumers and small businesses, provides payment services to corporate and public sector clients through its commercial card products, offers payment processing services to merchants, and provides auto and student loan services. The Corporate and Investment Bank segment offers a broad suite of investment banking, market-making, prime brokerage, and treasury and securities products and services to a global client base of corporations, investors, financial institutions, government and municipal entities. This segment offers a full range of investment banking products and services in all major capital markets, including advising on corporate strategy and structure, capital-raising in equity and debt markets, as well as loan origination and syndication. The Commercial Banking segment delivers extensive industry knowledge, local expertise and dedicated service to U.S. and U.S. multinational clients, including corporations, municipalities, financial institutions and non-profit entities. This segment provides financing to real estate investors and owners. This segment also provides comprehensive financial solutions, including lending, treasury services, investment banking and asset management to meet its client’s domestic and international financial needs. The Asset Management segment provides investment and wealth management services. This segment offers investment management across all major asset services, including equities, fixed income, alternatives and money market funds. This segment also offers multi-asset investment management, providing solutions to a broad range of clients investment needs. For individual investors, this segment also provides retirement products and services, brokerage and banking services, including trust and estate, loans, mortgages and deposits. The Global Finance & Treasury segment provides finance and capital management and strategy, this segment also provides the information, analysis and recommendations to provide clear strategic direction for business decisions, expense and capital discipline, enhanced controls, increased automation and transparency. The company was founded in 1968 and is headquartered in New York, NY. (MarketWatch)
