JPMorgan Chase (JPM.US) shares are falling almost 5% today amid bank's President Daniel Pinto remarkts. Pinto told analysts that the bank was too optimistic in projecting next year’s expenses and net interest income (NII).
- The current NII estimate of $89.5 billion, according to Pinto is “not very reasonable” given interest-rate changes expectations. Now investors know that this figure will be for sure lower.
- Third-quarter investment-banking fees could rise 15%, while markets revenue could rise 2%. Both measures came in below markets expectations. Also, Goldman Sachs expects that Q3 trading revenues may fall as much as 10% YoY.
J.P. Morgan Chase (JPM.US, D1 interval)
J.P. Morgan tests $205 level today, and we can see rising selling pressure on US financial sector, especially banking as investors bet harder on Federal Reserve rate cuts, supported by weakening labor market and slump in oil prices, indicating lower short-term inflation risks. The stock sell-off is today halted at EMA100 support zone (the black line). Dropping below it may lead to the test of 23.6 Fibo and EMA200 (the red line) between $192 and $196 (potentially medium-trend reversal pattern).
Source: xStation5
Daily summary: Markets recover optimism at the end of the week
US OPEN: Investors exercise caution in the face of uncertainty.
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