JPMorgan $JPM Stock Tanks On Buybacks at Bottom of List

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JPM stock tanked more than -5% in early morning trade on January 14, 2022. Revenue was soft but more significant was the fact that the CFO said share buybacks were at the “bottom of the list in 2022”.

JP Morgan Q4 Release

JPMorgan reported Q4 EPS of $3.33 versus the consensus estimate of $3.01. The company reported Q4 revenue of $29.3B and managed revenue of $30.3B versus the consensus estimate of $29.9B.

JPMorgan reported Q4 total markets revenue of $5.3B, down 11%, with Fixed Income Markets down 16% and Equity Markets down 2%.

JPMorgan CFO said that buybacks are at the ‘bottom of list’ for 2022. Considering that share buybacks were a huge percent of what put the JPM stock in a strong uptrend all these years, that a fairly significant event.

Jamie Dimon, Chairman and CEO, commented on the financial results: “JPMorgan Chase reported solid results across our businesses benefiting from elevated capital markets activity and a pick up in lending activity as firmwide average loans were up 6%. The economy continues to do quite well despite headwinds related to the Omicron variant, inflation and supply chain bottlenecks. Credit continues to be healthy with exceptionally low net charge-offs, and we remain optimistic on U.S. economic growth as business sentiment is upbeat and consumers are benefiting from job and wage growth.”

Dimon continued: “Global IB fees were up 37%, driven by both the Corporate & Investment Bank and Commercial Banking, due to unprecedented M&A activity, an active acquisition financing market and strong performance in IPOs. Markets revenue was down 11%, compared to a record fourth quarter last year, but up 7% versus the 2019 quarter driven by a strong performance in Equities. Asset & Wealth Management delivered robust results as we saw positive inflows into long-term products of $34 billion across all channels and regions, as well as continued strong loan growth, up 18%, primarily driven by securities-based lending. In Consumer & Community Banking, client investment assets were up 22%, with growth from higher market levels and positive net flows. Combined debit and credit card spend was up 26%, supporting accelerating Card loan growth, up 5%. Auto loans remain elevated, up 7%, although a lack of vehicle supply slowed originations to $8.5 billion, down 23%. Home lending had another strong quarter with originations at $42 billion, up 30%.”

Dimon concluded: “In 2021, we extended credit and raised over $3 trillion in capital for our consumer and institutional clients around the world, which includes nonprofits and U.S. government entities, including states, municipalities, hospitals and universities. We also accelerated investments to expand our product distribution capabilities, both domestically and internationally, enhance our products and services and modernize our technology. We continue to find attractive opportunities to invest in our businesses across the firm. Our longstanding capital hierarchy remains the same – first and foremost, to invest in and grow our market-leading businesses to support our clients, customers and communities; second, to pay a sustainable competitive dividend; and then, return any remaining excess capital to shareholders.”

📺 JPMorgan Chase, Wells Fargo beat Wall Street’s Q4 earnings estimates

JPMorgan Chase, Wells Fargo beat Wall Street's Q4 earnings estimates

📉 JPM Stock Technical Analysis

The short-term trend is positive, while the long-term trend is neutral. JPM is currently trading in the upper part of its 52-week range. The S&P500 Index is also trading in the upper part of its 52-week range, so JPM is performing more or less in line with the market. JPM is one of the lesser performing stocks in the Banks industry. 73% of 319 stocks in the same industry do better.

There is a support zone ranging from 154.28 to 156.75. This zone is formed by a combination of multiple trend lines in multiple time frames. There is also support at 150.94 from a horizontal line in the daily time frame.

There is a resistance zone ranging from 160.72 to 162.69. There is also a resistance zone ranging from 170.22 to 171.79. These zones are formed by a combination of multiple trend lines in multiple time frames.

JPM has an average technical rating and it also does not offer a high-quality setup at the moment. Prices have been extended to the downside lately. For a nice entry it is better to wait for a consolidation. Click here to sign up for email alerts on when JPM stock consolidates and is a good long entry.

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