The information on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG Bank S.A. accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it and as such is considered to be a marketing communication.
US banks are expected to see earnings growth of 5.5% overall for the third quarter, while revenues are forecast to grow by 4.3%. With the US economy roaring ahead, despite the recent non-farm payrolls (NFP) miss, most US banks are expected to see good growth, as interest rates rise and are forecast to rise further, while demand for loans, mortgages and other products remains strong.
The one bleak spot may be Wells Fargo, which, besieged by a multitude of troubles, is expected to report profits unchanged from a year earlier.
An all-time high for JP Morgan shares confirms the strength of this bank’s business, with more upside looking likely. The shares have seen steady gains since June 2016 and dips since then have been furiously bought, with the latest dip in September hitting the 200-day simple moving average (SMA).
The high from last week is $98.09, so a breakout from here puts the stock in all-time high territory. JPMorgan is expected to report $1.65 per share in earnings, up 4.3% from a year ago, while revenues rise 0.6% to $25.6 billion.