JP Morgan Fed by the Fed ๐Ÿฆ

Table of Contents

JP Morgan Fed by the Fed

JP Morgan does stocks and bonds, but its fixed-income traders made $7.3 billion last quarter – a figure so high that even if its stock traders made zip, the bank would still have eclipsed its all-time record for live-action trading revenue. JP Morgan is up 10% already this week!

The awesome earnings report perplexed some investors. JPMโ€™s bond traders did great despite zero interest rates and a migration out of bonds into stocks, but we have to remember that the Federal Reserve is in the market for distressed debt to suck that risk out of our financial system.ย 

It almost guarantees a higher bid than whatever JP Morganโ€™s asking price is for a junk bond (business on a silver platter!).

The banks do best when consumers invest and consume more, adding to the number of loans that need issuing. JP Morgan has the whole financials sector beat under CEO. Jamie Dimon, during an era that on paper, shouldnโ€™t be lucrative at all. Weโ€™re still in a technical recession!

Itโ€™s all about Q3 and Q4 now. JPโ€™s $10.5 billion loan-lossย provision points to low expectations in the near-term, but would you bet against the number one bank?ย 

Its competitors include Morgan Stanley, Goldman Sachs, Wells Fargo (which report yesterday as well but missed), and Bank of America, all battling it out for Wall Street dominance. Their second-quarter numbers get revealed tomorrow. Quick draw!

I am not a financial advisor and my comments should never be taken as financial advice. Investments come with risk, so always do your research and analysis beforehand.

Share:
More Posts
Get your daily Invstr Crunch

Get the market news and updates you need, delivered to your inbox or available on our daily podcast.

Risk Disclosure:

Invstr is not a bank and banking services are provided by Vast Bank, N.A.

Brokerage and Banking services are currently only available to U.S. residents.

Invstr app and web services are provided by Invstr Ltd. Advisory services are provided by Invstr Financial LLC, an investment adviser registered with the Securities Exchange Commission (SEC) details of which can be obtained here. Securities brokerage and custody services are provided by Apex Clearing, a broker dealer registered with the SEC and a member of FINRA and SIPC. There is no bank guarantee on securities and securities may lose value.

Investing involves risk and can lead to losses. Past performance does not guarantee future results.

Invstr app and web services are provided by Invstr Ltd. Invstr+ advisory services are provided by Invstr Financial LLC, an investment adviser registered with the Securities Exchange Commission (SEC). Securities brokerage and custody services are provided by Apex Clearing, a broker dealer registered with the SEC and a member of FINRA and SIPC. There is no bank guarantee on securities and securities may lose value. Vast Bank N.A. a nationally chartered bank and member of the FDIC, provides the banking products, including the products and services related to digital asset accounts. As with any asset, the value of Digital assets can go up or down and there can be a substantial risk that you lose money buying or holding digital assets. You should carefully consider whether trading or holding Digital assets is suitable for you in light of your financial condition. Your digital account does not support wallet to wallet transferring of your digital assets (i.e. cryptocurrencies) outside the platform. Any Digital Assets in your digital asset account are not insured by any government entities, including but not limited to FDIC or SIPC. The Invstr Visaยฎ Debit Card is issued by Vast Bank, N.A. pursuant to a license from Visa U.S.A Inc and may be used everywhere Visa debit cards are accepted. Invstr Ltd, Invstr Financial LLC and Invstr Securities Ltd are subsidiaries of Marketspringpad Holdings (collectively “Invstr”) and Invstr is solely responsible for the application services and website content.

Watchlists provided when users first access the service are not a recommendation to invest. Instead they are provided to help users better navigate the service. Users are free to edit and create their own watchlists. From time to time, Invstr will suggest instruments solely based on an individual’s interest and the interest levels of the Invstr community. The statistical and portfolio builder models generated by Invstr do not reflect actual investment results and are not guarantees of future results. Comments provided by Invstr leaders, influencers or members of the Invstr Community are not recommendations and should not be construed as such. Invstr does not endorse the content or the positions posted by them. Their investment approach, and that of the models provided by Invstr, may be different from yours and may not be appropriate for you.