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Two Ways to Play: JPMorgan's Earnings Are Up, But Caution Remains

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JPMorgan Chase Fourth-Quarter Earnings

JPMorgan Chase (JPM) reported results for its fiscal fourth quarter. The second-largest US bank said earnings came in at $0.74 a share, above consensus estimates of $0.61 a share. Revenues rose 32.1% year-over-year to $25.24, slightly below $26.8 billion consensus.

The company increased its provisions for consumer loan losses, adding $1.9 billion, and the level of credit reserves was increased to almost $33 billion, or 5.5% of all loans.

Chief Executive Jamie Dimon said in the press release, "While we are seeing some stability in delinquencies, consumer credit costs remain high and weak employment and home prices persist. Accordingly, we remain cautious."

In premarket trading, shares are slightly off about $0.50 to $44.10.

From the Bull Pen: We've noted on the Buzz the recent performance of the financials. But one can also look to the regional bank ETF (RKH), which has a 23% weighting in JPM. In the short-term, one can set a sell stop in the $80 to $81 range.

From the Bear Cave: Bears can look elsewhere. Consider the Ultrashort S&P 500 ETF (SDS) for a short-term trade if you think the broader market is headed for a correction. One can set a tight sell stop below $32.80.

For more ways to play and other trading ideas from more than 30 top market pros, take a free trial to our Buzz & Banter.

A Quick Check Around the World

Asian trading closed with the Nikkei 0.68%, India -0.17%, Hang Seng -0.29%, Shanghai 0.27%, and Taiwan 0.81%.

Across the pond, we see the FTSE 0.25%, CAC -0.03%, DAX -0.43%

As of 8:30 AM EST, S&P Futures are trading -3.50 to 1141.50. Nasdaq futures are -5.000 to 1883.25.

A Look at Commodities

Over in commodities, crude oil is -0.59 to 78.81 while gold is -9.800 to 1133.80 this morning. Silver is -0.095 to 18.560 and copper -0.0175 to 3.3700.

The dollar Index is +0.5250 to 77.4000.

On the Radar

Economics

December CPI M/M +0.1% vs +0.2% consensus, prior +0.4%
December CPI Y/Y +2.7% vs +2.8% consensus
December Core CPI M/M +0.1% vs +0.1% consensus, prior 0.0%
December Core CPI Y/Y +1.8% vs +1.8% consensus, prior +1.7%
Empire Manufacturing Survey: 15.92 vs. 5.00 cons.

09:15 Capacity Utilization 71.8% cons.
09:15 Industrial Production
09:55 Michigan Sentiment 73.8 cons

Good luck and have a great weekend! Go Saints!

No positions in stocks mentioned.

The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.

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