JPM stock reversed lower Monday following comments from JPMorgan CEO Jamie Dimon during investor day, regarding his long-term plans and playing down hopes for JPM buybacks. The Dow Jones giant, which opened higher on raised net interest income guidance, fell below a buy point
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JPMorgan Chase (JPM) CEO Jamie Dimon hinted he could retire from the bank earlier than expected during a Q&A session for the investor day conference. Dimon noted that the timetable for his succession “isn’t five years anymore,” without providing further detail about the timing of his exit.
He also said the bank will not purchase a lot of JPM stock at current prices, calling it a “mistake” based on current valuations. JPMorgan “will be patient” and hold cash rather than deploy it, Dimon said.
Dimon added that he personally believes that inflation is “a little thicker” than people think and that interest rates may surprise people.
Early Monday, JPMorgan raised its net interest income outlook to $91 billion for 2024, excluding its markets division. The bank during its first quarter report in April lifted its net interest income forecast to $89 billion from $88 billion, excluding the markets segment. Including the markets and trading segment, JPMorgan’s April net interest income outlook was unchanged at $90 billion.
The April guidance at the time fell short of analyst expectations of a $2 billion to $3 billion increase. JPMorgan in April also raised its expense outlook to $91 billion for 2024 from its previous guidance of $90 billion during its Q4 report. The forecast at the time caused shares to swoon.
JPM Stock
JPMorgan fell 4.1% to 196.34 Monday to lead losses on the Dow Jones. Shares had risen to a record 205.88 shortly after the open on the net interest income guidance.
JPM stock tumbled out of a buy zone for a flat base on the downside reversal. JPMorgan broke out above the 200.94 buy point on May 14.
JPM stock had rallied 20.4% this year through Friday’s close, marking the sixth best gain in the Dow Jones Industrial Average in 2024. American Express (AXP) has led the index so far this year with a 29.6% gain through Friday.
You can follow Harrison Miller for more stock news and updates on X/Twitter @IBD_Harrison
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