J.P. Morgan Chase, the largest bank in the United States, posted better than expected results in the first quarter on Friday. In its statement, the company said that "the impact of rising rates" had boosted its results, as well as its net interest income.
Its stock is up 4.5% Friday, with a price hovering around $ 110.
If you invested in JP Morgan JPM 10 years ago, this decision would have been successful: According to CNBC calculations, an investment of $ 1,000 on April 12, 2009 was worth just over $ 4,200 as of April 12, 2019, a total return of about 326%. At the same time, the S & P 500 was up 315%.
The company's earnings increased 5% to $ 9.18 billion, or about $ 2.65 per share. Analysts have estimated an average of $ 2.35 per share. Revenues also grew 5% to $ 29.9 billion, exceeding analysts' estimates of about $ 1.5 billion.
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"We have record revenues and a record net result, a strong performance in each of our core businesses and a more constructive environment," Chief Executive Jamie Dimon said in a statement.
"Despite global geopolitical uncertainty, the US economy continues to grow, employment and wages are rising, inflation is moderate, financial markets are healthy and consumer and business confidence remains strong . "
Indeed, thanks to the good results of banks, the Dow Jones Industrial Average jumped 274 points Friday. The S & P 500 was up 0.7% and the Nasdaq Composite up 0.5%.
Although J.P. Morgan's stock has performed well over the years, any individual stock can outperform or underperform and past performance can not predict future results.
And Dimon anticipates a potential headwind in the years to come: "The key point here," he said in his annual letter, "is that a relatively healthy US economy will face a wide variety of problems in 2020 and 2021. It is hard to look do not think that the range of possible outcomes is wider and that the probabilities of poor outcomes are increasing. "
If you want to invest, seasoned investors such as Warren Buffett and Mark Cuban suggest you start with index funds, which contain all the stocks of an index, which means that they are automatically diversified and tend to to be inexpensive. Moreover, as they fluctuate with the market, they are generally less risky than choosing individual stocks.
Here is an overview of the current market situation.
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