On Tuesday, the New York City-based United States’ largest lender JPMorgan Chase & Co. had revealed its earnings’ report for the second quarter of the year, which had beaten Wall St. profit estimates in light of an upsurge in trading revenues that in tandem had offset impacts of a record total of $10.5 billion the lender had set aside in order to cover future defaults, suggesting a bleaker outlook for the economy as the United States’ path towards economic recovery had been hindered by a flurry of hindrances including a growing uproar from state Governors who had disobeyed commands of Trump Administration to re-open the economy amid a record spike in pandemic cases.
In point of fact, although the whooping upsum of $10.5 billion that the United States’ biggest lender had set aside to cushion up future blows from bad debts and loan defaults, had been underscoring the extent of damage the pandemic outbreak had brought in, yet a better-than-expected quarterly profit during Q2, 2020 from JPMorgan Chase & Co., had led to a rise in the stocks of the trading powerhouses such as Morgan Stanley and Goldman Sachs, both of which were scheduled to reveal their second quarterly earnings’ report later this week.
JPMorgan shares climb after fairly upbeat quarterly earnings’ report
Aside from that, despite worries over a likely third-quarter backlash for the US lender, followed by the reveal of its quarterly earnings’ report on Tuesday, JPMorgan shares’ prices gained as much as 2 per cent in pre-market trading, however, rounded off the day 0.57 per cent higher to $98.21 per share following a late-afternoon sell-off wave.
In tandem, according to the JPMorgan Chase & Co. quarterly earnings’ report for Q2, 2020 released earlier on the day, the American multinational lender and financial services provider’s net income fell to $4.69 billion or $1.38 per share, however, the US lender’s revenue rose by 15 per cent to $33.8 billion on an annualized basis, while trading revenues had surged to $11.3 billion, which in effect had tuned up the complexion of Tuesday’s Wall St.
Meanwhile, adding that the US lender had been anticipating a double-digit unemployment rate at least until mid-2021, JPMorgan Chase & Co.
CFO (Chief Financial Officer) Jennifer Piepszak said to the reporters in a post-earnings conference call earlier in the day, “Compared to the first quarter, our reserve build now assumes a more protracted downturn ...
as we prepare and reserve for something worse than our base case,” suggesting a grey picture for the upcoming quarters.