This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

5 Things to Watch for in JPMorgan Chase Earnings

When Will You Resume Share Buybacks: JPMorgan was forced to suspend its $15 billion buyback program in the wake of the trading fiasco in May. But following the second quarter results, the bank said it hopes to be in a position to resume buybacks in 2013.

Stifel Nicolaus analyst Chris Mutascio believes that the firm's trading fiasco may still have some impact on the Fed's approval of its buyback.

"We believe there is a human element that goes into the CCAR process and there may be at least some amount of risk that the regulators look at the London trading issue, which occurred just weeks after JPM was approved for $16.4 billion in capital deployment actions (dividends and buy backs), when determining how much overall capital deployment they will allow in 2013," wrote Mutascio in a report Wednesday.

Analysts expect the bank to finish the third quarter with a Basel III Tier One Capital of 8.3%.

Merrill Lynch analyst Erika Penala said in a report Tuesday that the bank is well positioned to return $15 billion in 2013 following the stress tests.

Housing Recovery and Mortgage Banking: The Fed's third round of quantitative easing and encouraging signs of a recovery in housing have helped bank stocks rally in the third quarter.

Merrill Lynch's Penala believes the market is underestimating how much JPMorgan can gain from a recovery in housing.

"We believe investors are incorrectly overlooking [Citigroup] and [JPMorgan] on the housing theme, as both EPS power and market multiples are highly levered to a recovery. With consolidated loan loss reserves at 4.4% of loans for C and 3.3% for JPM versus 2% median of the large cap regional banks, the money centers have significantly more room to release reserves," she wrote in a report. "Improving credit should benefit EPS at C by 19% and JPM by 14% in '13, vs. 6.3% at the median large-cap regional."

The market will be tuning in for Dimon's commentary on whether the housing recovery is real and what it means for the bank in terms of loan growth and credit quality as well as what it means for the economy overall.

--Written by Shanthi Bharatwaj in New York
Disclosure: TheStreet's editorial policy prohibits staff editors and reporters from holding positions in any individual stocks.
3 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
JPM $61.57 -1.58%
WFC $48.94 -1.37%
AAPL $94.19 -1.04%
FB $118.06 0.54%
GOOG $695.70 0.48%


Chart of I:DJI
DOW 17,651.26 -99.65 -0.56%
S&P 500 2,051.12 -12.25 -0.59%
NASDAQ 4,725.6390 -37.5850 -0.79%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs