As lower investment securities balances and lower trading net interest income were mostly offset by loan growth, net interest income declined 1 percent from previous year to $11.2 billion and was up 2 percent from last quarter, driven by higher loan yields and balances. Noninterest expense fell 3 percent to $15.4 billion, while provision for credit losses fell 10 percent to $682 million.
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Last quarter was the worst for the stock market since 2011. The significant decrease of legal claim backlog will boost earnings this quarter.
-Revenue Change (Y-o-Y): -6.4%. The average 12-month target price stands at $73.86, which portrays a return potential of 19.8%, compared to the last price quoted ($61.67).
JPMorgan shares have slid 1.6 percent this year, outperforming the 6.6 percent decline of the 88-company Standard & Poor’s 500 Financials Index. We start the morning with Johnson & Johnson (JNJ) reporting before the market open and then JPMorgan Chase (JPM) is the one to look out for, along with Intel (INTC), coming out its latest quarterly financial data after the closing bell.
Net income in the mortgage banking business rose by 29 percent despite a 23 percent dive in revenue. Post opening the session at $62.39, the shares hit an intraday low of $61.575 and an intraday high of $62.545 and the price vacillated in this range throughout the day. JPM is set to announce its Q3 earnings on October 13 after the market close. The 24-company KBW Bank Index tumbled 9.5 percent in the third quarter, worse than the 6.9 percent drop for the broader S&P 500 Index. Investors looking further ahead, will note that the Price to next year’s EPS is 9.71.
JPMorgan sold the short-term assets it bought with those deposits.
Barclays offered the position to Staley, now managing partner of USA hedge fund firm BlueMountain Capital Management, and he accepted the offer, a person with knowledge of the situation told Reuters on Monday. Peltz is committed to helping GE transform back into an industrials-focused company. Analysts had estimated an EPS of $1.38.
Online streaming company Netflix, Inc. More earnings are on the way; including Wells Fargo and Bank of America on Wednesday October 14; and Citigroup and Goldman Sachs Thursday October 15.
The largest USA bank reported two earnings per share figures: $1.68 a share, a GAAP figure that includes a one-time $2.2 billion tax benefit and other items; and $1.32 per share, an adjusted figure that excludes those one-time items. Although the website continues to increase its collection of impressive shows, analysts are anxious that a recent price hike will take a toll of subscriber levels.
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Since April 15, 2015, the stock had 0 buys, and 6 sales for $7.25 million net activity. Comparatively, the stock had a rating of 1.59 three months ago.
