• JPMorgan stock is leading the way thanks to impressive third-quarter results.
• GAAP EPS is 10% above the Wall Street consensus.
• Investment Banking Income Benefits, Wealth Management Fees.
• Traders are focused on setting a modern all-time high.

JPMorgan (JPM) the company’s shares rose by over 5% on Friday after the publication of the results of the largest bank in the country, which significantly exceeded the consensus.

The Producer Price Index (PPI) for September was published before the market opening and it was not the signal expected by the market. Annual inflation data for both headline and core PPI were above consensus. In the case of annual core PPI, inflation rose above August’s level, even though the latter was revised upwards.

The Dow Jones Industrial Average (DJIA)of which JPMorgan is the main member, led other major US indices at the beginning of Friday’s session. At the time of writing, the DJIA is up 0.8% while the NASDAQ is up 0.3%.

JPMorgan Stock News

JPMorgan, led by CEO Jamie Dimon, posted GAAP earnings of $4.37 per share, more than 10% above the Wall Street consensus. This result was supported by higher investment banking and wealth management fees, but was hurt by higher loan provisions due to rising charge-offs in the credit card business. Additionally, $6 billion worth of share buybacks (approximately 1% of outstanding value) this quarter boosted that value.

Third-quarter revenue rose 7% from a year ago to $42.65 billion, beating the consensus estimate by nearly $1.3 billion.

Total deposits and loans increased slightly compared to last year, but investment banking fees increased by 31% y/y and asset management fees increased by 15% in the period. Car loans increased by 11% y/y in the third quarter. Fixed income revenues were flat compared to the previous year, while equity revenues increased by 27%.

Looking ahead, Chief Financial Officer Jeremy Barnum said third-quarter net interest income of $23.5 billion would likely decline to $22.9 billion in the fourth quarter because of the yield curve.

Based on a downward-sloping yield curve that is changing as the Federal Reserve cuts interest rates, Barnum predicted that the bank would see net interest income decline until it stabilizes in mid-2025.

Asked about Wall Street’s 2025 consensus of $87 billion in net interest income, Barnum said it’s “in the pipeline” but is near the upper end of what’s possible.

JPMorgan Stock Forecast

JPMorgan stock is nearing a modern record high. The current price emerged on August 30 at $225.48, with JPM shares trading at less than a dollar earlier in the session.

Fibonacci extensions give traders the key to where they can go. Currently, JPM stock is trading near the 161.8% Fibo at $224.31. Fibo 261.8% is $236.65 and Fibo 361.8% is $248.99.

Over the past two years, the 100-day elementary moving average (SMA) has provided decent support on numerous occasions. On Friday, the rate is just above $207.