1 00:00:02,520 --> 00:00:08,800 Speaker 1: Bloomberg Audio Studios, podcasts, radio news, The. 2 00:00:08,880 --> 00:00:13,160 Speaker 2: Stock Movers podcast, your roundup of companies making moves in 3 00:00:13,200 --> 00:00:16,480 Speaker 2: the stock market, harnessing the power of Bloomberg data. 4 00:00:17,040 --> 00:00:18,799 Speaker 3: Let's take a look at some stocks on the move today. 5 00:00:18,800 --> 00:00:22,680 Speaker 3: I'm Nathan Haker, joined by Bloomberg's Valerie Tytel on the 6 00:00:22,720 --> 00:00:26,120 Speaker 3: start of big bank earning season. In so far, Valerie 7 00:00:26,160 --> 00:00:28,600 Speaker 3: looks like a tale of two banks. Let's start with 8 00:00:28,680 --> 00:00:31,240 Speaker 3: JP Morgan Chase solid all around. 9 00:00:31,280 --> 00:00:34,400 Speaker 1: Good morning, Yeah, some solid results for JP Morgan. The 10 00:00:34,440 --> 00:00:37,120 Speaker 1: stock is only up by seven tens of percent, so 11 00:00:37,240 --> 00:00:39,920 Speaker 1: just barely outperforming the market. But there were some decent 12 00:00:40,000 --> 00:00:43,560 Speaker 1: results in this report for JP Morgan, the largest bank 13 00:00:43,600 --> 00:00:46,600 Speaker 1: in the US buy assets. A big beat in fixing 14 00:00:46,680 --> 00:00:50,000 Speaker 1: come trading revenue Nathan five point seven billion versus the 15 00:00:50,080 --> 00:00:52,960 Speaker 1: estimates of five point two. There was a small beat 16 00:00:53,000 --> 00:00:55,840 Speaker 1: when it came to equity's trading revenue. Also was a 17 00:00:55,880 --> 00:00:58,880 Speaker 1: beat in investment banking revenue, and a beat on return 18 00:00:58,960 --> 00:01:02,560 Speaker 1: on equity coming in at eighteen percent versus expectations of 19 00:01:02,640 --> 00:01:05,560 Speaker 1: fifteen point one. If you looked at return on tangible 20 00:01:05,600 --> 00:01:09,000 Speaker 1: common equity, it was a whopping twenty one percent for 21 00:01:09,160 --> 00:01:12,679 Speaker 1: JP Morgan Also, loan loss provisions came in a lot 22 00:01:12,760 --> 00:01:15,160 Speaker 1: less than expected. This is a sign maybe that JP 23 00:01:15,240 --> 00:01:19,320 Speaker 1: Morgan isn't penciling in much economic weakness ahead just yet. 24 00:01:19,360 --> 00:01:23,240 Speaker 1: The guidance also for NII came in above estimates. The 25 00:01:23,240 --> 00:01:26,520 Speaker 1: full year net interest income guided at ninety five and 26 00:01:26,560 --> 00:01:30,320 Speaker 1: a half billion versus estimates of ninety four and a half. 27 00:01:30,360 --> 00:01:33,440 Speaker 1: We also had some words from the CEO, Jamie Diamond 28 00:01:33,480 --> 00:01:37,640 Speaker 1: in this report, saying that the US economy remained resilient 29 00:01:37,800 --> 00:01:41,319 Speaker 1: in the current quarter, saying that ib activity, investment, banking, 30 00:01:41,360 --> 00:01:44,240 Speaker 1: the deal making activity started to slow, but had recently 31 00:01:44,600 --> 00:01:48,160 Speaker 1: gained momentum. There was a slight warning for the path ahead, 32 00:01:48,320 --> 00:01:51,800 Speaker 1: saying that there are still significant risks that persist, including 33 00:01:51,880 --> 00:01:53,880 Speaker 1: risks from tariffs and trade disruption. 34 00:01:54,440 --> 00:01:57,040 Speaker 3: And it's a different banking story as so far as 35 00:01:57,040 --> 00:01:58,680 Speaker 3: we can tell from Wells Fargo. 36 00:01:58,720 --> 00:02:02,040 Speaker 1: This morning, Fargo the stock had fallen as much as 37 00:02:02,040 --> 00:02:05,000 Speaker 1: two point seven percent. It's now down one point two 38 00:02:05,080 --> 00:02:07,600 Speaker 1: percent in pre market trade. This came after their second 39 00:02:07,680 --> 00:02:12,120 Speaker 1: quarter net interest income missed estimate. It came at eleven 40 00:02:12,160 --> 00:02:16,040 Speaker 1: point seven billion. The expectations were for eleven point eight 41 00:02:16,120 --> 00:02:18,680 Speaker 1: so not a huge miss. When it comes to that, 42 00:02:18,800 --> 00:02:21,680 Speaker 1: But there has been a lot priced into this stock, 43 00:02:21,720 --> 00:02:24,760 Speaker 1: a lot of promise priced into Wells Fargo after its 44 00:02:24,840 --> 00:02:28,079 Speaker 1: asset cap was listed lifted by the Federal Reserve. It's 45 00:02:28,120 --> 00:02:30,840 Speaker 1: even trading at a higher price to book ratio than 46 00:02:31,040 --> 00:02:33,360 Speaker 1: some of its peers such as Bank of America. So 47 00:02:33,400 --> 00:02:36,400 Speaker 1: that slight miss on net interest income is seeing the 48 00:02:36,560 --> 00:02:40,480 Speaker 1: stock getting I guess you know, falling to the downside. 49 00:02:40,520 --> 00:02:44,480 Speaker 1: After that, they also cut their NII outlook. On the 50 00:02:44,520 --> 00:02:46,840 Speaker 1: back of this. They now see full year net interest 51 00:02:46,880 --> 00:02:50,200 Speaker 1: income at forty seven point seven billion. The estimate was 52 00:02:50,320 --> 00:02:52,120 Speaker 1: for forty seven point nine billion. 53 00:02:52,600 --> 00:02:52,880 Speaker 2: Okay. 54 00:02:52,880 --> 00:02:55,720 Speaker 3: So while the focus turns to big bank earnings, there's 55 00:02:55,720 --> 00:02:58,480 Speaker 3: still a lot of attention on Nvidia and what it 56 00:02:58,520 --> 00:03:01,000 Speaker 3: says is it's big breakthrough on China sales. 57 00:03:01,480 --> 00:03:04,639 Speaker 1: Yeah, big breakthrough, and it's seeing the NASAC futures trade 58 00:03:04,800 --> 00:03:07,560 Speaker 1: at record highs as we're speaking. Navidia up some four 59 00:03:07,560 --> 00:03:10,840 Speaker 1: point six percent after it gets the ok to resume 60 00:03:11,040 --> 00:03:15,200 Speaker 1: certain AI chip sales to China after dramatic White House reversal. 61 00:03:15,240 --> 00:03:19,000 Speaker 1: They're preparing sales of their high end H twenty AI 62 00:03:19,080 --> 00:03:21,960 Speaker 1: chips to China. This is a big win for CEO 63 00:03:22,040 --> 00:03:26,480 Speaker 1: Jensen Kuwang has been very vocal against these export restrictions 64 00:03:26,480 --> 00:03:29,320 Speaker 1: from the White House. This H twenty trip chip was 65 00:03:29,400 --> 00:03:33,920 Speaker 1: originally designed to comply with Biden era trade restrictions, but 66 00:03:33,960 --> 00:03:36,600 Speaker 1: it's been banned for sale in the country since April. 67 00:03:36,600 --> 00:03:39,240 Speaker 1: But this is a big win for not just for Navidia, 68 00:03:39,320 --> 00:03:41,520 Speaker 1: but for many of the chip stocks. We're also seeing 69 00:03:41,560 --> 00:03:45,120 Speaker 1: AMD rise four point three percent, in Broadcom rising one 70 00:03:45,160 --> 00:03:46,240 Speaker 1: point four percent as. 71 00:03:46,120 --> 00:03:51,720 Speaker 2: Well the Stock Movers podcast from Bloomberg Radio. Check back 72 00:03:51,760 --> 00:03:54,720 Speaker 2: with us throughout today for the latest roundup of companies 73 00:03:54,760 --> 00:03:57,800 Speaker 2: making news on Wall Street and for the latest market 74 00:03:57,840 --> 00:04:02,160 Speaker 2: moving headlines. Listen to Bloomberg Rado Live. Catch us on YouTube, 75 00:04:02,240 --> 00:04:05,480 Speaker 2: Bloomberg dot com, and on Applecarplay and Android Auto with 76 00:04:05,560 --> 00:04:12,240 Speaker 2: the Bloomberg Business app m HM.