J.P. Morgan’s late Friday disclosure that it expects its markets revenue slump to steepen appears to have caught Wall Street off guard.
The largest U.S. bank by assets said in a regulatory filing it expects its markets revenue, which includes fixed-income and equities trading, to decline 20% in the quarter, sharper than the 17% drop it posted in the first quarter. The stock was down 2.3% Monday morning, and the news prompted several analysts to slash their estimates for the bank….
Furthermore, J.P. Morgan expects a production related pre-tax loss of $100 million to $150 million in the current quarter, which is sharply higher than the $58 million loss it reported for the first quarter. “Higher levels of mortgage interest rates are expected to continue to have a negative impact on volumes,” said the bank in the filing.
J.P. Morgan’s Late-Friday Filing Catches Wall Street Off Guard [WSJ MoneyBeat blog]