JPMorgan ($JPM) rises to $184 in a falling US market?
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On Fri, 12 Jan 2024, before US market trading begins, financial giant — $JPMorgan Chase(JPM)$ will be reporting its Q4 2023 earnings.
This report brings its an end to the bank’s financial activities for an otherwise:
“Eventful” 2023, marked by the March 2023 banking crisis.
And the extremely rare opportunity to scoop up a “high net worth” (HNW) clientele bank to bolster its Wealth Management segment.
JPMorgan, along with other mega cap companies will officially kick off quarterly earnings season; with financial institutions leading the pack, reporting their financial statuses.
Analysts expectations.
For 2023, analysts expect US's largest bank to post revenue of around $49 Billion. (see above)
Investment Banking revenue, could witness a YoY and sequential increase.
Trading revenues could stay flat.
For Net Interest Income (NII), JPMorgan has reiterated its full-year outlook to be $88.5 Billion. For Net Interest Margin (NIM), the bank is likely to see a positive impact from higher loan balances in Q4 2023.
Earnings per share (EPS) are expected to come in at $3.90 per share. This will be up +9.24% from last year’s EPS of $3.57 per share.
JPMorgan YTD stock performance:
JPMorgan Chase stock has increased by about +22.09% over the past year. (see above)
It has a “Moderate Buy” consensus rating ahead of the Q4 earnings.
In total, it has received 14 Buys and 5 Holds recommendations.
Analysts’ have an average price target of $184.11 for JPMorgan.
This implies a +7.50% upside potential from current $170.30 per share.
JPMorgan’s earnings should topple other US banks.
This comes about as a result of its outright acquisition of $First Republic Bank (San Francisco, California)(FRCB)$ during 2023’s US’s bank debacle.
US market will be kept abuzz with other US banks reporting their Q4 earnings on Friday as well.
This includes:
Should all banks report a stellar earnings, against a “soft landing” background, might just be the nudge required to close off 2024’s second week on a high.
Crashing US market backdrop.
JPMorgan and the other US banks will be reporting their earnings against a “crashing” US market backdrop.
US market “falling” is a “knee jerk reaction” brought by US’s December 2023 — Consumer Price Index (CPI) data released on Thu, 11 Jan 2024 morning. (see below)
Dec 2023 CPI rose by +0.3% to 3.4% versus forecast 3.2% & Nov 2023 CPI 3.1%. This shook US market to the core during morning hours trading with all 3 composite indexes plunging.
Dec 2023 Core CPI fell by -0.1% to 3.9% versus forecast 3.8% & Nov 2023 core CPI 4.0%. This was the “stabilizing” factor that helped US market to recover some lost grounds after 12 noon onwards.
With the Dow upped marginally (+0.04%), the S&P 500 dipped slightly (-0.07%) and the Nasdaq flat (0.0%), it is too early to predict:
How US market will react to JPMorgan’s Q4 earnings results.
How JPMorgan stock will price in US market sentiments.
Based on US pre-market indicators (if its any indication to go by), US market is likely to consolidate further this Friday.
Will this present a Buying Opportunity into US #1 bank - JPMorgan? Remember due diligence !
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