JPMorgan Chase & Co JPM, along with few other big banks, kicked off fourth-quarter earnings season Friday morning. The volatile price action for the behemoth bank following the report makes it the PreMarket Prep Stock of the Day.
Street Leans Long Into Report: As detailed in an article last week, JPMorgan held up very well during the S&P 500 index's mid-December swoon.
That strength continued this week as the bank stock crept higher. In fact, JPMorgan ended Thursday’s session higher for the week by $1.55 or 1.1%. That comes on top of last Friday’s monster gain of $2.59 or 1.9%.
The rally put the issue at its highest closing price since last March.
JPMorgan's Q4 Beat: Before the opening the company reported fourth-quarter EPS of $3.57, which beat the $3.07 estimate. Also, it reported revenues of $35.57 billion, which beat the $34.34-billion estimate.
On a negative note, banking revenue was $3.8 billion, down 28%. Investment banking revenue was $1.4 billion, down 57%. That was driven by lower investment banking fees, down 58%, reflecting lower fees across products.
PreMarket Prep's Take: When the issue was being covered on the show Friday, it was trading in the red by over $4 at the $135.50 area.
Co-host Dennis Dick was puzzled by the Street’s reaction.
"Basically, all the banks beat and are trading lower," he said: "Good, but not good enough."
Dick said he was unsure whether he would buy the dip.
"It sure seems that [with] fading moves, in this case, buying the dip has been rewarding."
The author of this article was surprised by JPMorgan's decline off the report. With the issue so deep in the red, investors were alerted to a potential support area: $135, as it was the general area of a series of highs last week.
JPM Price Action: After a much lower opening ($135.60 vs. $139.49), the issue spiked to $134.80 and caught a sustained bid.
It easily recovered its closing price and has continued to make new highs for the session. As of 1 p.m. ET, the bank stock had blasted as high as $143.35 and was attempting to remain in the $143 handle.
The next monthly resistance for the issue comes in at its March 2022 high of $143.93.
The discussion on JPMorgan Chase from Friday’s show can be found here:
Photo via Shutterstock.
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