- JPMorgan rose to a new all-time high on Thursday above $257.
- Stocks still look heavy as JPM shares underperformed Goldman Sachs this week.
- Fourth-quarter earnings beat Wall Street expectations due to higher investment banking fees.
- CEO Dimon has thrown cold water on speculation about Gene Piepszak replacing him.
JPMorgan (JPM) The stock hit a new all-time high on Thursday, a day after impressing Wall Street with big fourth-quarter earnings.
The previous high set on November 25 of $254.31 was replaced by Thursday’s intraday high of $257.04.
After three sessions of gains this week, the Dow Jones Industrial Average (DJIA) sold off during the morning session on Thursday before returning just before lunchtime. The S&P 500 and NASDAQ saw slight gains.
JPMorgan stock news
Earnings on Wednesday were good for Wall Street and the nation’s largest bank. JPMorgan reported GAAP earnings per share of $4.81 in the fourth quarter, 17% and $0.71 ahead of consensus.
Revenues of $43.74 billion came in at $2.18 billion ahead of expectations or 5% above expectations.
CFO Jeremy Barnum boasted on an earnings call that the bank had acquired 10 million new credit card accounts in 2024 and said higher asset management fees and investment banking fees led to a 13% year-over-year increase in revenue.
The retail and community banking unit, the largest by revenue, saw the smallest gains with revenue rising just 1.5% year-on-year. The Commercial and Investment Bank division was the main catalyst for growth as revenues increased by 17.5% compared to the previous year. The smaller asset and wealth management segment saw revenues rise 13.4% year-on-year.
“Underwriting fees rose significantly with debt up 56% and equity up 54%, driven primarily by favorable market conditions,” Barnum said.
The auto and card services unit saw revenues rise 14% from a year earlier, but higher provisions for credit losses dragged down net income.
In a question and answer session, CEO Jamie Dimon confirmed that he is working on a succession plan after leading the bank for the past two decades. When he said that he only had four or five years left in office, and that he would turn 69 next March, he threw cold water on the main candidate on Wall Street to replace him.
“I think it’s great that Gene Piepszak, who doesn’t want to be CEO, is here as COO,” Damon said sheepishly.
JPMorgan stock forecast
JPMorgan’s new high should prompt many traders to take profits. The positive news from Q4 earnings did not receive the same hype it did Goldman Sachs (GS) on Wednesday, which was trading up about 6%. On the other hand, JPM stock failed to close above 2%.
The 20-day simple moving average (SMA) has not moved below the 100-day SMA in about 14 months, so it is time for a move toward consolidation.
Now it’s not certain that JPM stock is overvalued. But with the Relative Strength Index (RSI) reading at 66, there is more room for downside than upside. A better entry for buyers would be to wait until JPM price drops to $230. This is where stocks found a decline on December 18 and also where the 100-day simple moving average is heading towards.
JPM stock daily chart
