JP Morgan stock (JPM) will kick off bank earnings season in the United States later.
JPM – Weekly Chart
The stock price for JPM is trading at 127.99 with a resistance level in play. The targets are 144.34 on the upside and 101.28 on the downside.
JP Morgan's earnings for the quarter ending March 2023 are expected to show revenue of $36,070 billion for a 14.18% year-on-year improvement. Earnings per Share (EPS) is estimated to rise $3.42, or 23.86%, over the same period.
Bank stock earnings will be more critical than usual due to the recent banking crisis and the capital committed to safeguarding regional banks. Investors will be looking for any adverse changes to bank balance sheets.
JPMorgan will lead the Q1 earnings season, with Citigroup and Wells Fargo releasing their latest results on 14 April. If the results from JP Morgan are positive, it could lift risk sentiment in the general market. Higher interest rates and more robust lending figures are expected to support Q1 results. However, lending will have suffered from the SVB banking crisis.
The bank's CEO, Jamie Dimon, has said that the odds of a recession have risen after last month's problems. Although a recession is not inevitable, he said that the recent banking failures have worsened the outlook.
Experts Remain Speculative on Forecast of Financial Markets
"It's just another weight on the scale," Dimon said. "We are seeing people reduce lending a little bit, cut back a little bit, and pull back ... It won't necessarily force a recession, but it is recessionary." Dimon also said that the banking crisis is not over, with the sector likely to face problems in the years ahead.