JPMorgan Chase will announce its first-quarter earnings report before the market opens on Friday. The bank has weathered a very challenging economic climate so investors will be looking for some guidance on that front. That makes the financial colossus the spearhead for a full-blown earnings assault from the largest U.S. banks. Competitors such as Wells Fargo and Morgan Stanley will release their results the same day. Next week, Goldman Sachs, Bank of America and Citigroup are expected to do the same.
Industry analysts estimate that JPMorgan Chase will earn $4.61 per share. They further predict that the company’s revenue will hit nearly $44.11 billion including advertising — which is a conservative estimate, per data from LSEG. Expectations are high around these numbers. This increased expectation has been fueled by the context of increasing economic concern, most notably because of President Donald Trump’s recent tariff policies.
In a move that could impact global trade relations, Trump has lowered proposed tariff rates for most countries but maintained higher rates for China. This modification will be in effect for the first 90 days. Investors are concerned about its long-term impact on the economy. Here’s Jamie Dimon, the CEO of JPMorgan Chase, raising the alarm. He warns that hawkish tariff policies might trigger a recession themselves, making these advancements all the more crucial to business and consumers alike.
The recessionary climate that now surrounds the business environment has caused bank stocks to be incredibly volatile as concerns of a recession loom. As one other analyst noted, increased uncertainty in the broader business environment would have a chilling effect on investment banking. Consequently, they’ve lowered the bar for expectations on earnings reports about to be released across the industry. Investors are laser-focused on what consumers and businesses are doing in the midst of these choppy economic waters. This increased scrutiny started on April 2 with the formalization of the heightening trade tensions.
JPMorgan Chase executives will host a conference call at 8:30 a.m. ET following the earnings release to discuss the financial results and provide further insights into the company’s outlook in light of ongoing economic challenges. Market participants will be hanging on their commentary with a fine-toothed comb. I know they want to dig into the impact that increasing tariffs and overall trade uncertainty might have had on consumer confidence and business investment.