Skip to content

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.

JPMorgan faces earnings decline for Q4, but stock price remains strong for now

JPMorgan and US banks will have benefited from the rise in interest rates seen in recent months, but will they warn that a recession is on the way?

Stock market Source: Bloomberg

JPMorgan earnings – what to expect

JPMorgan reports Q4 earnings on 13 January. The bank is expected to see revenue rise 13% to $34.3 billion, but earnings per share are expected to decline 7.2% to $3.09.

JPMorgan earnings preview – what does the Street expect?

Overall, higher interest rates and strong lending figures are expected to support the bank’s Q4 results.

During the quarter, US interest rates continued to rise, reaching a fifteen-year high of 4.24-4.5%, as the Fed battled strong inflation readings. Net interest margins will have been boosted for banks overall, with JPMorgan no exception. While the US economy still faces a tough year, for now the overall picture remains relatively healthy, with trading volumes, investment banking fees and income from mortgage banking all remaining strong.

At 11.6 times earnings, JPMorgan shares do not look too richly-valued, and the 2.9% dividend yield provides an additional attraction for income investors.

JPMorgan earnings – what do the brokers say

JPMorgan remains a highly-favoured stock among analysts. 27 analysts cover the company, and of these 16 have the stock at a ‘buy’ rating.

At present, the median target price is $145.10, around a 5% premium to the current market price.

JPMorgan stock – technical analysis

JPMorgan’s stock price has rallied sharply from its September low, and recent price activity has seen it move back above $130, holding above the 50-day SMA in the process.

Additional upside in the near-term now needs to come with a break above $140, an area that formed resistance back in March 2022. The rally since October has seen the shares bring the downtrend from the 2021 highs to an end, with buyers stepping in during early December to create a higher low that provided a springboard for further gains.

A move back below $125 would be a negative development, and indicate a possible move back to $122 as a support area.

JPMorgan chart Source: ProRealTime


A bellwether for the US economy

Bank stocks are always closely-watched for the insight the provide into the US economy. This time around they are more important than usual, as investors look for a sign that the US will fall into recession.

Should JPMorgan beat estimates then this will provide a lift to risk appetite generally, and potentially result in an extension of the rally in stocks seen around the globe. US stocks are in dire need of this, having lagged behind their global peers in recent weeks.

This information has been prepared by IG, a trading name of IG Markets Ltd and IG Markets South Africa Limited. In addition to the disclaimer below, the material 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 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. It 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. See full non-independent research disclaimer and quarterly summary.

Seize a share opportunity today

Go long or short on thousands of international stocks.

  • Increase your market exposure with leverage
  • Get spreads from just 0.1% on major global shares
  • Trade CFDs straight into order books with direct market access
Learn more

Live prices on most popular markets

  • Forex
  • Shares
  • Indices

Prices above are subject to our website terms and agreements. Prices are indicative only

Plan your trading week

Get the week’s market-moving news sent directly to your inbox every Monday. The Week Ahead gives you a full calendar of upcoming economic events, as well as commentary from our expert analysts on the key markets to watch.

You might be interested in…

<h3>How much does trading cost?</h3>
<h3>Find out about IG</h3>
<h3>Plan your trading</h3>

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading provider of CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.