JPMorgan hits new all-time high day after Q4 earnings

• JPMorgan rode to a new all-time high on Thursday above $257.
• Shares still look heavy as JPM stock is underperforming Goldman Sachs this week.
• Q4 earnings outperformed Wall Street consensus due to higher investment banking fees.
• CEO Dimon threw cold water on speculation about Jen Piepszak replacing him.

 

JPMorgan (JPM) stock reached a new all-time high on Thursday, one day after impressing Wall Street with a significant earnings beat in the fourth quarter.

The prior high from November 25 of $254.31 was superseded by Thursday’s intraday high of $257.04.

After three sessions of gains this week, the Dow Jones Industrial Average (DJIA) sold off during Thursday’s morning session before moving back to even just before lunchtime. The S&P 500 and NASDAQ have both witnessed minor gains.

JPMorgan stock news

Earnings on Wednesday were good for Wall Street and the nation’s biggest bank. JPMorgan reported GAAP earnings per share of $4.81 in the fourth quarter, 17% and $0.71 ahead of consensus.

Revenue of $43.74 billion arrived $2.18 billion ahead of consensus or 5% above expectations.

CFO Jeremy Barnum boasted on the earnings call that the bank had acquired 10 million new credit card accounts in 2024 and said higher asset management fees and investment banking fees ushered in a 13% YoY surge in revenue.

The Consumer & Community Banking unit, the largest by revenue, saw the lightest gains with revenue rising just 1.5% YoY. The Commercial & Investment Bank division was the primary catalyst for growth with revenue increasing 17.5% over a year prior. The much smaller Asset & Wealth Management segment saw revenue climb 13.4% YoY.

“Underwriting fees were up meaningfully with debt up 56% and equity up 54%, primarily driven by favorable market conditions,” Barnum said.

The Auto & Card Services unit saw revenue rise 14% from a year earlier, but a higher provisions for credit losses reduced net income.

In the question and answer session, CEO Jamie Dimon reiterated that he is working on a succession plan after leading the bank for the last two decades. Saying that he has four or five more years left in his position and that he turns 69 this March, he threw cold water on Wall Street’s leading candidate for his replacement.

“I think it's wonderful that Jen Piepszak, who does not want to be the CEO, will be here as Chief Operating Officer,” Dimon said coyly. 

JPMorgan stock forecast

JPMorgan's new all-time high should have many traders taking profits. The positive news from Q4 earnings didn't nearly receive the same fanfare as Goldman Sachs (GS) on Wednesday, which traded some 6% higher. JPM stock on the other hand failed to close above 2%.

The 20-day Simple Moving Average (SMA) hasn’t traveled below the 100-day SMA in about 14 months, so it's high time for a move toward consolidation. 

Now JPM stock is not overpriced to be sure. But with the Relative Strength Index (RSI) reading 66, there is more room for downside than upside. A better entry for buyers would be to wait until JPM drops back to $230. That's where shares found a landing on December 18 and also where the 100-day SMA is trending toward.

JPM daily stock chart