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14/01/2022 JPMorgan banking on rising inflation and possible rate hikes

Authored by ZanderVanDerMerwe
18.01.2022
Stock Squawk
0
2 min

Earnings focus will shift to the financial sector for the week as JPMorgan and Citigroup are due to release earnings during the Pre-Market this afternoon prior to the market opening up.

Yesterday’s Movers

  • Virgin Galactic Holdings Inc (SPCE) was down 18.92% as they announced the plans to raise $500M through convertible senior notes.
  • Snap Inc (SNAP) was down 10.18% as Cowen downgraded the social media company.
  • Guardant Health Inc (GH) was down 8.21% as the stock continues to slide following settlements with Foundation Medicine
  • Yandex NV (YNDX) was down 7.85%

Earnings Due:

StockSymbolAnnouncement dateRelease TimeEPS Estimate
JPMorgan Chase & CoJPM14/1/2022Pre-Market$3.00
Citigroup Inc.C14/1/2022Pre-Market$1.76
Goldman Sachs GroupGS18/1/2022Pre-Market$10.01

Stocks to watch:

JPMorgan Chase & Co (JPM)

JPMorgan is set to release earrings during the Pre-Market as the general estimation on EPS around the $3 mark. The previous quarter Earnings was exceeded coming in at $3.55, $0.55 above the estimate.

Loan growth and credit quality remain strong in the banking sector adding into the inflation concerns surrounding the US. 

While the Fed hasn’t increased rates as of yet, there is a general expectation that rates might very well be rising in the not too distant future, and investors are busy pricing that in. The banks are set to benefit from the net interest income once the Fed lays down their plan to curve inflation over the coming months.

Technical the stock is over extended following the bounce and continuation off the 200-day moving average, a general pullback to the $163 levels would be ideal to look for entry, however given a positive 4th quarterly earnings report there could be more significant upside to reach new all time highs.

Authored by ZanderVanDerMerwe
18.01.2022
Stock Squawk
0
2 min
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