J.P. Morgan earnings: Expect strong trading results, talk of regulations and tax reform
The biggest bank in the U.S., J.P. Morgan Chase & Co., (JPM) will kick off the first-quarter earnings season on Thursday and investors are expecting a bounce in trading results after a weak 2016.
“The year-over-year rebound in capital markets activity, net interest margins and asset prices are benefiting the big-5 banks, insurers and asset management companies,” RBC Capital Markets analysts wrote in a Monday note.
What to Expect from JPM-JPMorgan’s Earnings in 1Q17
In its 1Q17 earnings release on April 13, 2017, JPMorgan Chase (JPM) is expected to post earnings per share (or EPS) of $1.52, a rise of 12.6% on a year-over-year (or YoY) basis. This growth is expected mainly due to the strong performance of the company’s commercial banking, lending, consumer finance, and credit card businesses.
Sequentially, the bank is expected to see a marginal fall in its EPS compared to $1.58 in 4Q16. It’s managed to continually beat estimates over the past few quarters.
Can JPMorgan (JPM) Break Out of Recent Sloth on Q1 Earnings?
One of the key factors that might help JPMorgan Chase & Co. (JPM – Free Report) gain investors’ confidence when it releases first-quarter results on Apr 13 is the favorable impact of rising rates on its interest income. A decent trend in this respect might convince investors to bet on its potential to earn from huge investable assets.
The stock, which recently snapped the Trump-induced rally on weaker Treasury yields and dampened enthusiasm over the President’s promises, may get a boost from a trading revenue backed betterment in earnings.
Today's Trading Lesson
On the Tape Today | 4-13-17
SWFT | Swift Transportation setting up a lowering opening to bid for a new long. Looking to place a limit order at half the ATR (average true range) @ $21.75 with half of the total share size intended. Adding the full position on the first bullish momentum pause. Stop loss on a close below $20.75. First target comes in at $24.50.
YELP Yelp Inc. produced a bearish energy candlestick and closed into a well-offered day. $32 shows support but if the stock market sees selling today, I am game planning for a break down. A $31.75 sell stop trigger the short sale. Minor support in the $29 area would be the first target. If big picture gets aggressive selling, I expect to hold for a $26.50 price to cover the short.
Tape Reading the SPY ETF
$SPY price action showed cracks in the bullish order flow yesterday, but let’s not get bearish yet.
The ETF remains stuck between $234-236 and needs to close below that level, to inspire a short sale that lasts longer than an hour. 😉 The chart shows lower highs without momentum.
This drifting type price action makes it hard to have conviction. That means cash flow trades until we see “well-offered” or well-bid” candlesticks with some decent volume. No reason to trade bigger or hold longer unless the institutions are clearly taking a stand.
Minimum criteria needs to see the last price, change from the open, and change from the previous close in sync. If you see price trading outside of the previous day’s range, you can squeeze a little extra out of the trade.
If not, ring the register or stay in cash.
Stock Market Today: Heatmap of the S&P 500
Stocks to Trade 4-13-17 | Thursday Edition
Bullish Momentum: DXC
Bearish Momentum: x, tsco, fast, aa, nue, tpx, avgo, nsc, swks, snap, dal
Long-Term Order Flow
Bullish Order Flow: DXC, MOMO, CCI, MAR, LLY, PM, HCA, BABA, MCD, ESPR, AMT, BIVV, ADBE, AMZN, WYNN, RH, ETN, WDC, TSLA
Bearish Order Flow: tsco, tpx, car, snap, kmx, fslr, lb, fnsr, akam, lulu, mnk
2X Normal Volume: X, FAST, TSCO, AFSI, SWFT, AVGO, AKRX
Inside Days: bac, aapl, msft, fb, wfm, ms, nvda, baba, amat, sbux, cvx, yhoo, cvs, tgt, stx, dis, ibm, celg, wy, kb, ctrp, bby, dhi, payx, dhi, dltr, intu, akam, lrcx, trip, goog
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