Dow component JPMorgan Chase & Co. fires the opening shot of first quarter earnings season in Friday’s pre-market, with the banking giant expected to report earnings per share of $2.29 on $27.7 billion in revenues. The bank beat expectations in the fourth quarter but missed on revenues, with Wall Street analysts once again overestimating the impact of U.S. economic strength on the banking sector.
That mixed theme may prevail this time around as well, even though last year’s historic tax cuts were expected to supercharge 2018 economic growth. That didn’t happen in the first quarter, with the Atlanta Fed now expecting mediocre 2.0% GDP growth. As a result, potential investors should lower their expectations and wait to see how the stock trades following results. If past is prologue, a buy-the-news reaction could fizzle out quickly. (See also: JPMorgan Chase & Co.: The Big Bank.)
JPMorgan stock is running in place ahead of first quarter earnings, with last year’s historic tax cut failing so far to spur economic growth. …read more
Read more here: JPMorgan Stock Stuck in Neutral Ahead of Earnings