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Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage.

The vast majority of retail client accounts lose money when trading CFDs.

You should consider whether you can afford to take the high risk of losing your money.

The vast majority of retail client accounts lose money when trading CFDs.
Important Notice - Fraud awareness
Important Notice - Scam alert
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. The vast majority of retail client accounts lose money when trading CFDs. You should consider whether you can afford to take the high risk of losing your money.
Important Notice - Fraud awareness
Important Notice - Scam alert
The vast majority of retail investor accounts lose money when trading CFDs / Spread betting with this provider.
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. The vast majority of retail investor accounts lose money when trading CFDs / Spread betting with this provider. You should consider whether you understand how CFDs / Spread betting work and whether you can afford to take the high risk of losing your money.
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How to Trade JP Morgan on Earnings

Earnings season has arrived for the US investment banks, with many big names releasing on Friday.

JP Morgan releases its Q4 2022 numbers ahead of the weekend, stirring up market curiosity on what to expect and how to trade.

JPM – Daily Chart

JPM – Daily Chart

JP Morgan has been on a solid rebound since October, but the bank stalled with the Dow Jones in December. Another bounce has created a transparent support and resistance level at $138.66. If the earnings disappoint, there may be further downside to follow with the first target at $128.

JPMorgan has been able to navigate the tough headwinds, with third-quarter results showing revenue growing by 10% year over year. The bank has been able to capitalise on higher interest rates, leading to $17.5 billion of net interest income. With strong Q4 guidance of $19 billion, the bank is predicting further strength. Analysts have an average price target of $143 for this stock.

For the three months to the end of December, analysts expect the New York-based bank to earn $3.12 per share on revenues of $34.3 billion. This is compared to the previous year, when earnings came in at $3.33 per share on revenues of $30.35 billion. For the full year, earnings are expected to drop 24% year over year to $11.66 per share, while full-year revenue of $130.46 billion would mark a 4.1% increase for the year.

Analysis from investment bank JP Morgan predicted an 85% of at least a 1.5% move higher in stocks with a print below 6.6%. They also saw a 15% chance of a 2.5-3% move lower if the number exceeds 6.6%.

The Q3 earnings were boosted by higher interest rates, with solid revenue coming in at $32.7 billion, which beat estimates by $1 billion. Revenues were 14% higher, while expenses rose just 11%. Consumer profits were higher, but the bank suffered in the Investment Banking arm due to market volatility, with revenues falling 43% to $1.7 billion.

Market volatility explains the struggles in the investment banking industry, and companies are retrenching into a cost-saving mode rather than making acquisitions. Overall, the bank's four key segments showed a slight improvement.

The market will first assess the US economy's inflation report on Thursday, which will have a bearing on the path ahead for JPM following this latest earnings report.

Last Updated: 13/01/2023

This market commentary and analysis has been prepared for ATFX by a third party for general information purposes only. Any view expressed does not constitute a personal recommendation or solicitation to buy or sell as it does not take into account your personal circumstances or objectives, and should therefore not be interpreted as financial, investment or other advice, or relied upon as such. You should therefore seek independent advice before making any investment decisions. This information has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. We aim to establish and maintain and operate effective organisational and administrative arrangements with a view to taking all reasonable steps to prevent conflicts of interest from constituting or giving rise to a material risk of damage to the interests of our clients. The market data is derived from independent sources believed to be reliable, however we make no representation or warranty of its accuracy or completeness, and accept no responsibility for any consequence of its use by recipients. Reproduction of this information, in whole or in part, is not permitted.


 

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