JPMorgan Set to Release 2021 Q1 Earnings

Key points

• JPMorgan kickoff Q1 earnings for 2021 as banking sector performs positive
• Morgan earnings are expected to lag slightly from their strong Q4 results
• The bank stock positive rally is expected to get a boost from the results

JPMorgan Q1 earnings to start the earnings season as the banking sector shines

The JPMorgan stock has had a very positive rally in the last four months as the share prices continuously hit record highs. The bank stock has been boosted by the improved economic outlook as the vaccine rollout program moves at a fast pace, and the reopening of the in the U.S has reflected on the improved economic condition. The stock has broken out of the resistance level of 2018 to set up new highs. The upcoming earnings will be key for the giant bank stock to set more highs after recently consolidating, failing to sustain its bullish momentum.

The last quarter results for JPMorgan were highly impressive performance in both earnings and revenues despite the pandemic’s impact on different businesses and banks, all thanks to Fed for keeping the rates to near 0 and boost from the trading activity. The bank reported better than expected results in Q4, EPS of $3.79 against $2.72 and revenue of $30.1 billion against $28.7 billion. The trading revenue rose by 20%, and investment bank revenue jumped 37%.

JPMorgan will release its report on Wednesday before the opening bell. We expect the company to report an increase in its year-over-year earnings report with revenues for Q1 set to show higher figures. The stock price for near-term movement will influence by the figures, and the price could look for direction after the report.

The company is expected to record Q1 earnings of $3.06 per share in its upcoming report, which could show an increase of +278% in its year-over-year. The revenues are expected to show $30,4 billion in its report. Although the report is expected to show a drop from its Q4 earnings, the report could be better than the 2019 Q1 results.

The markets will eye any headlines on the future of the company’s earnings and the change in their share price. The management could be expected to give detailed views on the health of the company and its future.

The investors will be hoping for positive figures in the investment and trading report. However, the stock movement will depend on better than expected figures. JPMorgan stock price could trade higher in the opening should the key figures beat expectations in the report. As well, should they miss expectations, the stock could trade lower.

Technical outlook

The bank stock has had a strong run to the upside since the beginning of the year to date, the strong bullish movement has recently slowed after the stock price broke out of the 2019 high at $140 to set out a new record high at $160, this was after a solid performance in the banking sector.

In the past days, the stock price has been ranging between the upper resistance level of $157 and the lower support of $148. The market formed a wedge that could play a big role ahead of the expected earnings report.

A post-earnings report could set up a break out the wedge consolidation, and the bulls could search doe break about the upper resistance to push the market to a record high above the previous high at $161. On the other side, the sellers will be eyeing a breakout below the key support level.