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JPM, WFC, GS Earnings: The Economy Is Strong, But There's a Caveat

Video Credit: The Street - Duration: 00:54s - Published
JPM, WFC, GS Earnings: The Economy Is Strong, But There's a Caveat

JPM, WFC, GS Earnings: The Economy Is Strong, But There's a Caveat

It's a mixed bag.

TheStreet breaks it down.

Let's go bank by bank.

JPMorgan JPMorgan beat revenue and earnings per share expectations, posting revenue of $29.6 billion and EPS of $2.59.

Analysts were looking for $28.9 billion and $2.50.

CEO Jamie Dimon mentioned the strong credit card and consumer business, saying there was strong consumer spending in the quarter.

That's a great sign for the economy.

Lower interest rates are still likely for July, but JPMorgan's consumer results are certainly a good sign.

On the not-so-great side, the bank lowered its guidance on net interest income, or the total amount of gross profit generated from lending.

That could indicate there will be fewer loans than previously expected, but it certainly reflects lower interest rates, as the Federal Reserve has indicated it will lower rates to stimulate the economy.

Wells Fargo Wells Fargo reported revenue of $21.58 billion, beating expectations of $20.93 billion.

Earnings per share was $1.30, beating estimates of $1.30.

Management said its lending and consumer business also performed handsomely, another indication that while the U.S. economy is decelerating, it's on strong footing.

Goldman Sachs Goldman Sachs beat on both top and bottom lines.

Revenue was $9.46 billion, beating estimates of $8.83 billion.

EPS was $5.81, better than the expected $4.89.

Goldman is less directly exposed to the consumer, and its biggest business, investment banking posted strong numbers, good news for Goldman investors.

Investment banking revenue was $1.86 billion, beating expectations of $1.77 billion.

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What the Upcoming Earnings Season Means for Investors


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Tweets about this

DavydeRosa

Davide Rosa ✌️ @saxena_puru But if you have a strong economy business make more revenues and earnings 🤔 What's wrong with this? 10 hours ago

pgrlegacy

Craig RT @stephphilip8: SOARING STOCK MARKET PAYS NO HEED TO DEMOCRAT IMPEACHMENT FARCE: NEW RECORD📈 "...buoyed by strong corporate earnings, a p… 13 hours ago

MrArchieGraham

Archibald “Moonlight” Graham @Crazy60729730 @HeshamAly1981 @NorthmanTrader Why is it a massive recession? Record home sales. Record earnings fr… https://t.co/3xCFIJLH7I 1 day ago

Oigetit_Finance

Oigetit Finance US stocks fluctuated near record highs on Wednesday as investors mulled better-than-expected earnings reports and s… https://t.co/3RVrFQdrf5 1 day ago

kaliba_apac

Kaliba Despite an overall slowdown of the economy, the #techsector's 4 biggest companies have reported strong sales. Could… https://t.co/2P8jzz7tgO 2 days ago

gusanthonyteam

The Gus Anthony Team Housing market is still going strong and propping up the economy https://t.co/FbA1vVRp9Y #RealEstate #RealEstateMarket @gusanthonyteam 2 days ago

Reyeous

Matthew Worzala @Josephprestley If the economy is so strong, while will a long needed boost in minimum wage ruin it? If the economy… https://t.co/7Q81nEchoT 2 days ago


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