JP Morgan Chase (JPM) and Goldman Sachs (GS) also smashed first-quarter forecast on Wednesday. Wells Fargo (WFC) also estimates. Mixed Banking Shares
Big bank stocks have resurfaced, fueled by Biden’s massive stimulus package and the ongoing launch of vaccines. Treasury yields are also rising, with a 10-year rate higher than 1% again.Investment banking activity is also swift as SPACs explode, while trading desks benefit from soaring volatility in the quarter. At 1
estimateZacks Investment Research analysts expect earnings per share to nearly triple to $ 3.05 from the same quarter a year ago on revenue of $ 30.07, up 6.4 percent.
results: JPMorgan’s earnings soared 477% to $ 4.50 a share. Revenue rose to $ 33.12 billion. But revenue was heavily funded by JPMorgan, releasing $ 5.2 billion from credit loss reserves.
Consumer banking revenue fell 10 percent to $ 6.7 billion. Investment banking income more than tripled to $ 2.9 billion. Fixed income trading revenue rose 15 percent to $ 5.8 billion and equity trading income rose 47 percent to $ 3.3 billion. Commercial banks rose 11 percent to $ 2.4 billion. Asset management revenue rose 20% to $ 4.1 billion.
warehouseStock market: The stock fell 0.4% to 153.54 on the stock market today, JPMorgan shares were in a four-week tight pattern, with 161.79 entries, according to marketSmith chart analysis.This is a promising buying opportunity as it follows a reasonable buy point from the figure. Base model In this case, JPMorgan shares had a previous buy point of 141.20 from the cup base.
“By stimulating total spending, potential infrastructure spending, sustained quantitative declines, strong consumer and business balance sheets, and complacency during a potentially pandemic, we believe that we will continue to do so.” The economy has the potential to grow extremely strong and be extremely strong over the years, ”CEO Jamie Dimon said in a statement on Wednesday.
Last week, he wrote to shareholders that big banks face a huge threat from fintech rivals as banks play a lesser role in the financial system.
He also said that the valuation of the stock market. Dimon sees the US economy booming in 2023, but added that tough times lie ahead.
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estimate: Analysts see Goldman Sachs’ revenue more than doubled to $ 9.79 on sales of $ 11.5 billion, a 31.5 percent year-on-year increase.
resultsEarnings per share of $ 18.60 on revenue of $ 17.7 billion, investment banking income rose 73% to $ 3.77 billion. Fixed income trading revenue rose 31 percent to $ 3.89 billion and equity trading income rose 68 percent to $ 3.69 billion. Asset management revenue hit $ 4.61 billion, compared with a negative $ 96 million a year ago. Wealth management revenue rose 16% to $ 1.74 billion.
The reserve for credit losses is a net benefit of $ 70 million, compared to a net provision of $ 937 million last year.
warehouse: GS shares rose 4.7 percent to 342.97 on Wednesday.Goldman Sachs shares were in a tight three-week pattern, with a buy point of 342.98.It also looked for support at the 10-week line.
Goldman Sachs reportedly plans to give its wealthy clients access to Bitcoin and other digital assets.
estimate: Wells Fargo posted EPS of 69 cents, compared to 1 cent a year ago. But sales are expected to drop 0.6% to $ 17.62 billion.
resultsEarnings per share of $ 1.05 on revenue of $ 18.06 billion. Reserve for credit losses was down $ 5.1 billion. Consumer banking revenues were flat at $ 8.65 billion. Commercial bank revenue fell 12 percent to $ 2.2 billion. Corporate and investment banking revenues rose 7% to $ 3.6 billion. Wealth management revenue rose 8% to $ 3.5 billion.
warehouse: Wells Fargo stock was up 4.7 percent to 41.67.WFC shares were in a four-week tight pattern, with a buy point of 41.64.
Bank of America (BAC) and Citigroup (C) reported Thursday while Morgan Stanley (MS) Friday report
The Fed is not expected to raise rates.
As borrowing rates remain low and the economy has recovered, inflation fears have also risen, which has led to lower bond prices and higher yields. Higher bond yields benefit banks because they lend at the long-term end of the yield and borrow for a short time.
Meanwhile, Federal Reserve Chairman Jerome Powell said it is highly unlikely the Fed will raise interest rates this year. In a “60 minutes” interview on Sunday, he said inflation would have to average about 2% before any rate hike.
Follow Adelia Cellini Linecker on Twitter @IBD_Adelia.
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