Stock Market Update

[BRIEFING.COM] The S&P 500 (flat), Nasdaq Composite (+0.3%), and DJIA (-0.6%) sit mixed at midday after improving from session lows. 

JPMorgan Chase (JPM 314.42, -10.07, -3.10%) is trading lower after reporting fiscal Q4 results. The company missed on GAAP EPS, although adjusted EPS came in better than expected. Revenue increased 7.1% yr/yr to $45.8 billion, which was slightly below analyst expectations. Ahead of the earnings details, it is worth noting that JPM announced last week that Chase will become the new issuer of the Apple Card, with an expected transition period of approximately 24 months, while Mastercard will remain the payment network.

Corporate & Investment Bank (CIB) revenue rose 10% year-over-year, supported by strong client activity. Markets revenue surged 17%, benefiting from robust demand for financing and healthy trading volumes. Payments revenue reached a record $5.1 billion, driven by continued deposit growth and higher fees. Consumer & Community Banking (CCB) revenue increased 6%, as the franchise continued to add customers at a strong pace. During the year, JPM opened 1.7 million net new checking accounts and 10.4 million new credit card accounts.

Management commentary was a key focus. CEO Jamie Dimon said the U.S. economy remains resilient. While labor markets have softened, conditions do not appear to be deteriorating materially. Consumers continue to spend, and businesses remain generally healthy, supported by fiscal stimulus, potential deregulation benefits, and the Fed's recent monetary policy actions. However, JPM cautioned that markets may be underestimating risks, including geopolitical uncertainty, sticky inflation, and elevated asset prices.