JPMorgan Reverses After CEO Jamie Dimon Hints At Retirement

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JPMorgan Reverses After CEO Jamie Dimon Hints At Retirement

JPM stock reversed lower on Monday following comments from JPMorgan CEO Jamie Dimon at the investor day regarding his long-term plans and downplaying JPM’s buyout hopes. The Dow Jones giant, which opened higher on higher net interest income forecasts, fell below a buy point.




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JPMorgan Chase (JPM) CEO Jamie Dimon hinted he may retire from the bank earlier than planned during a Q&A session for the investor day conference. Dimon stressed that the timetable for his succession “is no longer five years”, without providing further details on the timetable for his departure.

He also said the bank wouldn’t buy many JPM shares at current prices, calling it a “mistake” based on current valuations. JPMorgan “will be patient” and conserve cash rather than deploy it, Dimon said.

Dimon added that he personally thinks inflation is “a little bit higher” than people thought and that interest rates might surprise people.

On Monday morning, JPMorgan raised its outlook for net interest income to $91 billion for 2024, excluding its markets division. The bank during its first quarter report in April raised its forecast for net interest income to $89 billion from $88 billion, excluding the markets segment. Including markets and the commercial segment, JPMorgan’s net interest income outlook for April remained unchanged at $90 billion.

The April forecast at the time fell short of analysts’ expectations, who predicted an increase of $2 billion to $3 billion. JPMorgan also raised its spending outlook in April to $91 billion for 2024, up from its previous forecast of $90 billion in its fourth-quarter report. Forecasts at the time caused stocks to fall.

JPM Stock

JPMorgan fell 4.1% to 196.34 on Monday, leading the Dow Jones losses. Shares had hit a record high of 205.88 shortly after the net interest income forecast opened.

JPM stock broke out of a buy zone for a flat base on the downward reversal. JPMorgan surpassed 200.94 point of purchase on May 14.

JPM stock had risen 20.4% this year through Friday’s close, marking the Dow Jones Industrial Average’s sixth-best gain in 2024. American Express (AXP) has led the index so far this year with a 29.6% gain through Friday.

You can follow Harrison Miller for more stock news and updates on X/Twitter. @IBD_Harrison

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