JPMorgan Chase & Co. Q2 Earning Preview

While other financial institutions have had to scramble to react to a rapidly changing regulatory and customer environment, JPMorgan Chase & Co. has thrived. The bank benefits from being the largest bank in the United States by market capitalization. JPMorgan Chase & Co. commonly referred to as Chase, is the sixth largest US-based bank in terms of assets and the third largest in terms of market capitalization.

As a result, investors have been willing to overlook past missteps when weighing the company’s future potential. With its recent earnings report highlighting several businesses that are firing on all cylinders, now might be the time for investors to take another look at what this company can do.

Normalization helped it survive 2021; what will 2022 bring?

Having seen the steady stabilization of trading operations and global normalization since the second half of 2021, the same is anticipated to have been a bright point for JPMorgan during the second quarter of 2022.

The events of the first quarter of 2022, particularly Russia’s invasion of Ukraine, continued to wreak havoc on supply chains and contribute to global uncertainty. This caused significant market volatility in the second quarter.

As Russia’s conflict with Ukraine continues, JPMorgan posted mixed first-quarter results in April and warned of “severe geopolitical and economic difficulties” ahead.

During the second quarter, worries of an economic downturn, soaring inflation (highest level in forty years), and increasing interest rates led to a rise in customer activity and trading volume.

CEO and Chairman Jamie Dimon’s comments
The CEO and Chairman Jamie Dimon, also added, “Our focus this quarter remained on helping our clients navigate difficult markets and unpredictable events, which included working with governments to implement economic sanctions of unprecedented complexity.

While our company will continue to deal with this global turmoil, our hearts go out to the extreme suffering of the Ukrainian people and to all those affected by the war.”

Data Facts

JPMorgan Chase & Co. announced earnings of $2.63 per share on revenue of $32.3 billion for the first quarter of 2022, whereas the average expectation for EPS was $2.73 on revenue of $31.2 billion.

In its next report, this business is anticipated to announce quarterly EPS of $2.80 (the reported EPS  for the same quarter last year was $3.78) with  current revenue forecast at $31.74 billion, which is somewhat higher than the $30.48 billion that was recorded the previous year.

JPM’s Reputation on the Line?

The Wall Street Journal has reported that US Justice Department officials are investigating former JPMorgan precious metals traders.

These traders are suspected of engaging in a kind of price manipulation known as spoofing.

Although this current revelation may not have any influence on JPMorgan’s to-be-reported results, it may undoubtedly hurt the bank’s image.

#JPMorgan Stock Analysis

Earnings beats and misses are important, but they may not be the only factor in a stock’s price change. Despite an earnings beat, many companies nevertheless end up falling because of other variables that disappoint buyers. In the same vein, many stocks end up higher after an earnings miss due to unexpected triggers or strong technical picture.

After recovering slightly in May 2022, the price of #JPMorgan has been in decline. At the time of writing, the price is trading at 112.92.

Since the start of 2022, #JPMorgan is in the downward trajectory. The price is down by 35.33% YTD. The price has dipped more than 17% in June alone.

The price is way below the 50& 20-day MA on the daily chart, Supply trend lines intact, supply for the #JPMorgan  lies around 120. A breakout may be a foundation to accumulate demands. On the flip side the break of 110 may attract more supply.

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Adnan Rehman 

Market Analyst

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