This figure is down from $2.33 trillion in the first quarter—which is a warning sign that the bank is reducing its overall lending.
Shares of JPMorgan closed Monday, October 8, at $115.32, up 7.8% year to date and up 12.8% from the 2018 low of $102.20 set on July 6. The stock is just 3.4% below its February 27 high, which is also the all-time intraday high at $119.33. Meanwhile, the Dow 30 is up 7.2% year to date and is just 1.7% below its all-time intraday of 26,951.81 set on October 3.
Analysts expect JP Morgan to post earnings per share between $2.25 and $2.33 when the company reports before the opening bell on October 12. JP Morgan’s status as the nation’s biggest bank and its largest balance sheet gives it an opportunity to continue a string of 11 consecutive earnings-per-share beats.
JP Morgan still remains the most important stock given its global banking activities. The fact that the bank has announced plans to cut 400 jobs in its consumer home lending divisions are sure signs of a red flag.
The daily chart for JP Morgan shows that the stock traded back and forth around its 200-day simple moving average between May 19 and July 16—with this moving average now at $112.05. The weekly chart for JP Morgan is neutral, with the stock above its five-week modified moving average of $114.41—which is well above its 200-week simple moving average at $81.55. This was the “reversion to the mean” last tested during the week of February 12, 2016, when the average was $54.44.
Given these charts and analysis, traders should be expected to buy JPMorgan shares on weakness to the semiannual value level of $109.38 and reduce holdings on strength to my quarterly risky level of $133.15.
Concurrently, JP Morgan’s equity research team also won first place for the third year in a row in Institutional Investor’s annual “All-America Research Team” ranking.
The list is widely regarded as the most important survey for measuring the stock analysis expertise of Wall Street banks. It tabulates more than 3,900 votes, surveys 1,359 institutions with a cumulative $13 trillion of US equity assets under management.