Big Banks Open Their Books for First Test After Rate Cuts

Published On Oct 11, 2024, 8:11 AM

JPMorgan and Wells Fargo reported mixed earnings results. JPMorgan earned nearly $13 billion last quarter, slightly down from last year but better than analysts expected. Wells Fargo's profit was $5.1 billion, down 11% from the previous year but also above forecasts. Both banks are adjusting to the Federal Reserve's recent interest rate cuts, which have made deposits more appealing to customers, affecting their profit margins. Despite the banks' earnings being stronger than anticipated, the outlook remains uncertain due to geopolitical tensions and shifts in investor sentiment, highlighted by Warren Buffett's recent divestments in large bank stocks.

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Stock Forecasts

JPMView JPM chart on TradingView

Positive

JPMorgan's strong earnings and better-than-expected performance suggest resilience in a challenging economic environment, making it a potential buy for investors looking for stability. However, geopolitical risks could pose challenges.

WFCView WFC chart on TradingView

Negative

Wells Fargo's earnings beat expectations, but ongoing issues with customer deposits shifting and bond investments suggest caution. Its profit decline could indicate a more challenging road ahead, making it less favorable to investors.

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