Why JPMorgan Chase Stock Is Down By 5% Today

JPMorgan Chase Stock Falls After Quarterly Report

Shares of JPMorgan Chase found themselves under material pressure after the company released its quarterly results. Citigroup, which also reported earnings today, declined after the report, while Wells Fargo rallied.

JPMorgan Chase reported revenue of $29.3 billion and GAAP earnings of $3.33 per share, missing analyst estimates on revenue and beating them on earnings.

The company’s CEO commented: “The economy continues to do quite well despite headwinds related to the Omicron variant, inflation and supply chain bottlenecks […] we remain optimistic on U.S. economic growth as business sentiment is upbeat and consumers are benefiting from job and wage growth”.

The market is less optimistic today as it decided to focus on the headline revenue miss.

What’s Next For JPMorgan Chase Stock?

Shares of JPMorgan Chase and other bank stocks have been recently moving higher as Treasury yields increased. As yields rise from such low levels, banks should have more opportunities to show good performance, so investors and traders rushed to buy bank stocks.

However, it remains to be seen whether this enthusiasm will remain intact after the release of JPMorgan’s quarterly report. While analyst estimates for 2022 have been moving higher in recent months, the bank’s earnings are still projected to fall from 2021 levels.

Currently, JPMorgan Chase is expected to report earnings of $12.04 per share, so the stock is trading at roughly 13 forward P/E. This is not too cheap compared to peers.

JPMorgan Chase stock reached all-time high levels back in October 2021, and is currently trading about 8% below these levels. This is a material pullback, although it is not clear whether the pullback itself will attract speculative traders.

However, it the economy remains in a decent shape while Treasury yields continue to move higher, JPMorgan Chase stock may enjoy stronger support in the upcoming weeks.

For a look at all of today’s economic events, check out our economic calendar.