JP Morgan and Wells Fargo to report earnings

After a healthy relief rally yesterday following the short-term extension to the debt ceiling, two of the larger US financials are due to report today.

JP Morgan and Wells Fargo are each due to report their latest third-quarter earnings before the start of the US trading day. It is likely that both sets of board members will be feeling considerably more optimistic about market reaction to the figures, following the developments in Washington last night.

Prior to the discussions that pointed towards a six-week extension of the US debt ceiling, there was a very real chance that traders would have looked to reduce their market exposure ahead of the weekend. Two days during which politicians were able to talk freely while the markets were shut was a situation that many would have feared.

As is always the case, these two equities will set the tone for the financials who will be announcing results over the next couple of weeks in this latest US reporting season. The major points of interest for analysts will be the amount JP Morgan has had to put aside for miscellaneous fines, and how much it has allocated to possible future issues. Wells Fargo, on the other hand, is more likely to be scrutinised for its debt book and the balance of lending to small and medium-sized US businesses.

IGA, may distribute information/research produced by its respective foreign marketing partners within the IG Group of companies pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, IGA accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore recipients should contact IGA at 6390 5118 for matters arising from, or in connection with the information distributed.

This information/research prepared by IGA or IGA Group is intended for general circulation. It does not take into account the specific investment objectives, financial situation or particular needs of any particular person. You should take into account your specific investment objectives, financial situation or particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit. 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. In addition to the disclaimer above, the information does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. Any views and opinions expressed may be changed without an update.

See important Research Disclaimer.