The US stock market has big bank earnings season beginning on Wednesday with JP Morgan (NYSE:JPM) releasing its Q4 numbers.
JPM – Daily Chart
The price of JPM stock has moved above support from the November gap open. That would be the support level for an earnings disappointment. But the target for now is the all-time high above $250.
The US stock market will be in focus on Wednesday with earnings from JP Morgan, Citigroup and Wells Fargo released ahead of the US market open.
JPMorgan is scheduled to start the fourth-quarter 2024 earnings season and the largest American bank’s earnings will garner a lot of attention with insights coming from CEO Jamie Dimon on the economy and Presidential change.
JPM’s third-quarter performance was strong despite industry-wide operating challenges and fourth revenue of $40.92 billion expectations support a 6.1% year-over-year growth. The company has beaten earnings expectations in the last four consecutive quarters by an average beat of 7.73%.
Net interest income will be in focus again after the Federal Reserve cut interest rates by 50 basis points to 4.25-4.5%. This, along with the rate cut in September, is likely to have given some support to JPMorgan’s net interest income (NII) as the rise in funding/deposit costs declined.
Recent clarity on the Fed’s rate cut path and a stable economic backdrop, domestically and globally, are likely to have provided further support to the lending scenario. The Federal Reserve also released positive data for commercial and industrial, real estate and consumer loans for the first two months of Q4.
“Around 1 day chart lows ($92K – 88K), bid liquidity has been buffered up a decent amount with increased demand,” he wrote. A move into those levels would break the long-term support line and put BTC in a pressure situation ahead of Trump’s inauguration.
Another positive for JPM could be in merger and acquisition fees as the m&a market was more upbeat in Q4 than in 2023. Management expects IB revenues for corporate & investment banking to jump 45% on a year-over-year basis.
Banking earnings will set the tone for the stock market this week after the S&P 500 closed on a heavy bearish tone last week. JPM has been stronger than its peers and the likes of Citi and Wells may give more clarity on overall sector strength.
