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JPMorgan boosts profit forecast, stock rises

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Yahoo Finance Live’s Jared Blikre discusses the boost in stock for JPMorgan Chase.

Video transcript

- And switching gears to the financial sector, JPMorgan's stock moving higher in the premarket after the company boosted its full-year forecast. Banking giant reporting it may after all achieve its key performance target in 2022. There's a big investor day going on right now. And these are big events for the company. It gives them a chance to broadcast what they're going to do.

I'm always alert for M&A news. But we were just talking about how so many stocks are battered and bruised here. Well, there's probably some good candidates. JPMorgan really ramping up its fintech investments over the last few years. One stat they threw out that just kind of blew my mind-- their costs are going up to about $77 billion a year. Now, they were talking about their net interest margin. That's how they make money. That is about 25% higher than forecast. I believe something in the range of $55, $56 billion. So that's a lot of income. But the expenses are just palpable here.

- Yes. But I guess on the silver lining side, they're not changing that expense forecast at the meeting today. The meeting, by the way, is the first one they've held since before the COVID-19 pandemic. So this is the first opportunity they have to update investors in person in this particular fashion. I'm just looking at some of the other headlines from here. People tend to pay attention to color commentary that Jamie Dimon gives at these things. And he says there's a strong economy, but it faces, quote, "big storm clouds," which I guess is not a news flash. We've been hearing from a lot of commentary to that effect.

It's also interesting he says credit is better than it has ever been. So that was an interesting comment as well as we look for-- we're all just trying to read the tea leaves here to figure out, is there going to be a recession in the US? What are the various economic indicators, both conventional and non? So obviously JPMorgan is in a position where it can give us some of those tea leaves.

- Yeah. Every day is kind of a battle to just get through as much information, read the tea leaves, and try to figure out what's going to happen next. And Jamie Dimon has been saying that the consumer is strong, the consumer is strong for quarters and quarters. And I think one big tell could be when he stops saying that. And it's not today, but he has a firsthand look at all those credit card receipts and charges that are pouring in. So boots on the ground look there. He has a very good insight I think into what's going on in the American economy.

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