JPMorgan Chase  (JPM) – Get Report is often considered a best-in-breed bank stock, which is why investors will be looking for the company to be a leader as this earnings season kicks off.

JPMorgan will report earnings on Tuesday before the open along with Citigroup  (C) – Get Report and ahead of others like Bank of America  (BAC) – Get Report, Wells Fargo  (WFC) – Get Report and Goldman Sachs  (GS) – Get Report.

Unlike the S&P 500, which has made new 52-week highs, JPMorgan and the banks continue to struggle.

While off the lows, plenty of technical damage remains. Investors will look to see if management is less cautious than it was in the summer and if the consumer is looking better or worse from three months ago.

If investors like what they hear, it could trigger a nice move higher for JPMorgan and its peers this quarter. If not, it could put bulls in a tough spot as we progress through the fourth quarter.

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Trading JPMorgan Stock

Daily chart of JPMorgan stock.

Daily chart of JPMorgan stock.

Surprisingly, when the rest of the market was pulling back in the first half of September, JPMorgan stock held steady. The decline in tech was spilling over into the indices, but not into the financials. However, the group couldn’t hold up forever.

JPMorgan stock ended up selling off in the second half of September and testing down into range support near $90.

Since testing into support, JPMorgan stock has rebounded sharply, reclaiming the 20-day and 50-day moving averages in

JPMorgan Chase & Co. is planning to set emissions targets for its financing portfolio, joining other massive banks in bringing climate goals to its lending activity.

The biggest U.S. bank will establish goals to be achieved by 2030 for each each industry in its portfolio, starting with oil and gas, automotive manufacturing and electric power. It will begin announcing the targets next year.

JPMorgan is also working to achieve a net-zero carbon footprint for its own operations starting this year as part of a broader commitment to align its activity with the 2015 Paris climate agreement. Morgan Stanley had pledged to eliminate the net carbon emissions generated by its financing activities in three decades.

The changes send a signal that JPMorgan is thinking more seriously about its role in fighting climate change. The bank has been under increasing pressure from environmental activists to divest from the fossil-fuel industry. In February, the firm said it would tighten its financing policy and pledged to stop advising or lending to companies that get the majority of revenue from the extraction of coal.

In May, a shareholder resolution requesting that the firm issue a report outlining how it intends to reduce greenhouse-gas emissions associated with its lending business received support from 49.6 percent of shareholders — just missing a majority threshold, according to the preliminary tally. The bank has also replaced Lee Raymond, the former Exxon Mobil Corp. boss, as lead independent director of its board after nonprofit groups and some large investors pushed to remove him due to his track record on climate change.

The Rainforest Action Network said the bank’s new policy is a “welcome step forward” but “falls short,” according to Patrick McCully, climate and energy director of the group. “If

(Bloomberg) — If Democrats do “sweep” the November elections and increase capital gains taxes, it would be unlikely to cause more than a temporary slide in the U.S. stock market, according to JPMorgan Chase & Co.

Strategists and prediction markets are increasingly pricing in a “Blue Wave” where Democrat Joe Biden wins the presidency and his party takes control of the Senate, adding to their hold on the House. That might allow for an increase in some tax rates — including capital gains.

If a higher rate become effective Jan. 1, 2022, there would probably be some downward pressure in equity markets in the fourth quarter of 2021, according to JPMorgan strategists led by Nikolaos Panigirtzoglou. But once the new rate was in place, stocks would likely resume their upward trajectory, as they did in the first halves of 1987 and 2013 following increases on some capital gains.

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© via Bloomberg

“Longer term, we see little impact from a prospective capital gains tax rate increase on risk taking and investors’ attitude toward equities as an asset class, given the current low yield and high equity risk-premium environment,” the strategists wrote in a note dated Friday.


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One of the major attractions of equities right now is the relatively high return investors can enjoy, with bonds and cash globally offering historically low yields. Real yields are negative for about $31 trillion of bonds, a separate group of JPMorgan strategists estimated recently. With Biden’s lead over President Donald Trump increasing in recent weeks, Wall Street has been turning its focus to the implications of a potential Democratic sweep that could allow the party to more easily usher in big policy changes.

JPMorgan estimates there could be tax-related equity selling of about $200 billion around a prospective increase in the capital gains

“Systemic racism is a tragic part of America’s history,” CEO Jamie Dimon said.

JPMorgan Chase pledged $30 billion to help ameliorate the racial wealth gap in the U.S. and “reduce systemic racism against Black and Latinx people,” the firm announced in a statement Thursday.

The investment bank said the $30 billion commitment over the next five years will come in the form of loans, equity and direct funding to promote affordable housing, grow Black and Latinx-owned businesses, improve access to banking in communities of color, and build a more diverse workforce.

“Systemic racism is a tragic part of America’s history,” Jamie Dimon, chairman and CEO of JPMorgan Chase, said in a statement. “We can do more and do better to break down systems that have propagated racism and widespread economic inequality, especially for Black and Latinx people.”

“It’s long past time that society addresses racial inequities in a more tangible, meaningful way,” the chief executive added.

PHOTO: People walk inside JP Morgan headquarters in New York, Oct 25, 2013.

People walk inside JP Morgan headquarters in New York, Oct 25, 2013.

People walk inside JP Morgan headquarters in New York, Oct 25, 2013.

Brian Lamb, the bank’s global head of diversity and inclusion, added that he feels they have a “responsibility to intentionally drive economic inclusion for people that have been left behind.”

“The COVID-19 crisis has exacerbated long-standing inequities for Black and Latinx people around the world,” Lamb said. “We are using this catalytic moment to create change and economic opportunities that enhance racial equity for Black and Latinx communities.”

Black and Latinx workers have been disproportionately impacted by unemployment amid the COVID-19 crisis, data from the Department of Labor indicates.

Some of the highlights from the bank’s outline of how the $30 billion will be parceled include originating an additional 40,000 home-purchase

Similar to the first half of the year, coronavirus-related concerns continued give rise to market volatility during third-quarter 2020. Thus, driven by a spike in volatility and higher client activities, JPMorgan’s JPM trading business is likely to have received a substantial boost. Markets revenues, which constitute approximately 20% of total revenues, are likely to reflect positively on its upcoming results, slated to release on Oct 13, before market open.

The coronavirus pandemic and resultant economic slowdown weighed on investor sentiments, while support from government’s stimulus package and the Federal Reserve’s efforts to support the economy were on the positive side. Thus, equity markets witnessed a solid performance during the quarter. Likewise, fixed income markets saw a robust performance.

Therefore, JPMorgan’s equity and fixed income markets revenues are expected to have improved in the to-be-reported quarter.

At an investor conference in mid-September, management provided outlook related to markets revenues. The bank expects markets revenues to be up 20% year over year.

The Zacks Consensus Estimate for equity markets revenues of $1.86 billion suggests a rise of 22.7% from the prior-year reported number. The consensus estimate for fixed income trading revenues of $4.3 billion indicates an increase of 20.8%.

Other Major Factors at Play

Investment Banking (IB) Fees: Deal making rebounded in third-quarter 2020 as economic and business activities gradually resumed. During the quarter, dealmakers revisited transactions that were on hold as coronavirus wreaked havoc across the world. Hence, JPMorgan’s advisory fees are likely to have been favorably impacted.

Likewise, IPO activities rebounded, with the third quarter being one of the busiest since 2000. Further, as companies continued to build liquidity to tide over the pandemic-induced crisis, there was a rise in follow-up equity issuances.

Also, amid near-zero interest rates and the Federal Reserve’s bond purchase program that commenced on Mar