Softer sales expected from JPMorgan

Regulatory scrutiny continues to hang over the investment banks, ensuring that enthusiasm is controlled.

JPMorgan external
Source: Bloomberg

JPMorgan is due to post its third-quarter figures on Tuesday 14 October, and as ever will be the first of the major US banks to show their hand. The markets are expecting adjusted earnings per share of $1.379; lower than the $1.59 from Q2. Sales are also expected to be lower at $24.278, which should see pre-tax profits drop from $8.331 to $8.229.

The last three months have seen shares in JPMorgan rise from $56.22, before the release of its previous figures, up to $59.87, having briefly traded above $62 in-between.

Global regulators have continued to scrutinise all the major banks and JPMorgan is no exception. The continuous trickle of negative news has ensured that share price action has been subdued. The latest issue that the firm’s lawyers will have to deal with is a $10 billion class action lawsuit being brought against them by investors, who feel that the bank previously misled them with regards to the risks of holding mortgage-backed securities. This has come hot on the heels of the $13 billion settlement that the company paid to regulators over the same issue.

The strength of the company’s figures out soon will go a long way to dictating wither the shares are able to once again challenge above the $62 level or will need to rely on historic support that stands around the $53.20 region.

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