JPMorgan’s shares up as bank posts better than expected profits

<p>JPMorgan Chase second-quarter profit fell less than analysts expected.</p>

JPMorgan Chase posted today (July 15th) second-quarter profit that fell less than analysts expected.

The earnings amounted to $1.46 (£0.85) per share, compared with $1.60 a year earlier. They beat the forecasts of analysts polled by FactSet, who predicted earnings of $1.29 a share, AP reports.

JPMorgan warned investors in May to expect Wall Street’s trading slump to continue through the second quarter, saying that fixed income and equities trading revenue could drop 20 per cent from a year earlier.

The bank said today its second-quarter earnings fell nine per cent as revenue at its investment banking and mortgage businesses dropped.

The bank's net income totalled $5.6 billion in the quarter after payments to preferred shareholders, down from net income of $6.1 billion in the same period last year.

JPMorgan’s investment banking chief Daniel Pinto said in a statement there were encouraging signs toward the end of the second quarter, including an improvement in “some markets activity.”

The bank's total revenue of $25.4 billion surpassed the $23.9 billion average estimate of analysts. Its share climbed 3.93 per cent to $58.51 today at 10:58 ET in New York.

Meanwhile, US stocks fell as the Federal Reserve said valuations for smaller companies in social media and biotech industries appear “substantially stretched,” Bloomberg reports.

She added that the central bank must press on with monetary stimulus as “significant slack” remains in labour markets and inflation is still below the Fed’s goal.

The Dow Jones Internet Composite Index fell 1.11 per cent and the Standard & Poor’s 500 Index fell 0.25 per cent at 11:04 ET in New York. 

Find up to date information on the FTSE 100 and spread betting strategies at City Index.

Join our live webinars for the latest analysis and trading ideas. Register now

GAIN Capital UK Limited (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.