Market Snapshot
briefing.com
| Dow | 33826.61 | -202.99 | (-0.60%) | | Nasdaq | 12099.72 | -66.54 | (-0.55%) | | SP 500 | 4130.65 | -16.84 | (-0.41%) | | 10-yr Note | -28/32 | 3.519 |
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| | NYSE | Adv 1002 | Dec 1881 | Vol 797 mln | | Nasdaq | Adv 1456 | Dec 2945 | Vol 4.6 bln |
Industry Watch
| Strong: Financials, Communication Services, Consumer Discretionary |
| | Weak: Utilities, Health Care, Real Estate, Information Technology, Consumer Staples |
Moving the Market
-- Leadership from the financial sector following earnings reports from several large banks
-- Weak mega cap stocks weigh on market
-- Rising Treasury yields
-- Sharp increase in year-ahead inflation expectations seen in the preliminary University of Michigan Consumer Sentiment Index for April
-- Fed Governor Waller (FOMC voter) thinks policy needs to be tightened further and to stay tight for substantial period
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Closing Summary
14-Apr-23 16:30 ET
Dow -143.22 at 33886.38, Nasdaq -42.81 at 12123.45, S&P -8.58 at 4138.91
[BRIEFING.COM] Today's trade had a predominately negative bias, sending many stocks lower. The main indices tried to move higher in the early going, but quickly fell below their flat lines and remained in the red through the close. Investors were digesting a slate of economic data and corporate news ahead of the open, including some pleasing Q1 earnings results from several large banks.
JPMorgan Chase (JPM 138.73, +9.74, +7.8%), Citigroup (C 49.56, +2.26, +4.8%), BlackRock (BLK 691.33, +20.60, +3.1%), and PNC Financials (PNC 121.85, +0.44, +0.4%) were among the top performing stocks today, driving a 1.1% gain in the S&P 500 financial sector.
While the financial sector was providing support for the broader market, mega cap losses offset much of that support and drove a lot of the index level weakness. Names like Meta Platforms (META 221.49, +1.14, +0.5%), Amazon.com (AMZN 102.51, +0.11, +0.1%), and Alphabet (GOOG 109.46, +1.27, +1.2%) were able to recover their losses and finish with at least a modest gain. This coincided with the broader market rebounding from its lows of the day. Ultimately, the main indices closed the session off their lows of the day.
In addition to pressure from mega cap stocks, investors were reacting to Fed Governor Waller's (FOMC voter) remarks in a speech before the open that the Fed hasn't made much progress on its inflation goal and that he thinks monetary policy needs to be tightened further and remain tight for a substantial period of time. Also, some added selling pressure kicked in after the preliminary University of Michigan Consumer Sentiment Index for April at 10:00 a.m. ET showed year-ahead inflation expectations rising to 4.6% from 3.6%.
Treasury yields rose today in response to the inflation expectations data and Fed Governor Waller's comments. The 2-yr note yield rose 11 basis points to 4.10% and the 10-yr note yield rose seven basis points to 3.52%.
The Dow Jones Industrial Average (-0.4%) was a relative underperformer among the major indices today, feeling the pinch of sizable losses in Boeing (BA 201.71, -11.88, -5.6%) and UnitedHealth (UNH 551.79, -14.44, -2.7%). BA declined on reports it expects production and delivery delays for its 737 MAX due to parts problems while weakness in UNH stemmed from investors' concerns about meeting short and long-term EPS targets in the face of Medicare Advantage changes.
Notably, regional banks were under pressure today despite gains in larger banks. The SPDR Regional Bank ETF (KRE) fell 2.0%. The weakness in regional bank stocks contributed to the underperformance of the Russell 2000 (-0.9%).
- Nasdaq Composite: +15.8% YTD
- S&P 500: +7.8% YTD
- S&P Midcap 400: +2.4% YTD
- Dow Jones Industrial Average: +2.2% YTD
- Russell 2000: +1.1% YTD
Reviewing today's economic data:
- Total retail sales declined 1.0% month-over-month in March (Briefing.com consensus -0.4%) following an upwardly revised 0.2% decline (from -0.4%) in February. Excluding autos, retail sales were down 0.8% month-over-month (Briefing.com consensus -0.4%) following an upwardly revised unchanged reading (from -0.1%) in February.
- The key takeaway from the report is that sales declines were seen across most retail categories, reflecting weakness in consumer spending on goods that should exacerbate concerns about an economic slowdown that cuts into earnings prospects.
- Import prices declined 0.6% month-over-month and were down 4.6% year-over-year. Excluding fuel, import prices were down 0.5% month-over-month and down 1.5% year-over-year. Export prices fell 0.3% month-over-month and were down 4.8% year-over-year. Excluding agricultural products, export prices were down 0.2% month-over-month and were down 5.2% year-over-year.
- Total industrial production increased 0.4% month-over-month in March (Briefing.com consensus +0.2%) following an upwardly revised 0.2% increase (from 0.0%) in February. The capacity utilization rate jumped to 79.8%(Briefing.com consensus 79.0%) following an upwardly revised 79.6% (from 79.1%) in February.'
- The key takeaway from the report is that the entire gain in industrial production in March was driven by the increased output of utilities, which is to say the headline print belies an otherwise soft environment for manufacturing output.
- Business Inventories rose 0.2% in February (Briefing.com consensus +0.3%) following a revised 0.1% decrease in January (from -0.1%).
- The preliminary University of Michigan Consumer Sentiment Index for April checked in at 63.5 (Briefing.com consensus 62.7) versus the final reading of 62.0 for March. In the same period a year ago, the index stood at 65.2.
- The key takeaway from the report is that short-run inflation expectations were up noticeably from the prior month, which is something that could compel the Fed to press ahead with another rate hike in May even though long-run inflation expectations remained stable.
Looking ahead to Monday, market participants will receive the following economic data:
- 8:30 a.m. ET: April Empire State Manufacturing survey (prior -24.6)
- 10:00 a.m. ET: April NAHB Housing Market Index (prior 44)
- 4:00 p.m. ET: February Net Long-Term TIC Flows (prior $31.90 bln)
Treasury yields settle higher
14-Apr-23 15:35 ET
Dow -185.65 at 33843.95, Nasdaq -60.57 at 12105.69, S&P -14.12 at 4133.37
[BRIEFING.COM] The main indices continue to trade above their lows for the day.
The 2-yr Treasury note yield rose 11 basis points today, and 14 this week, to 4.10%. The 10-yr note yield rose seven basis points today, and 12 this week, to 3.52%.
Looking ahead to Monday, market participants will receive the following economic data:
- 8:30 a.m. ET: April Empire State Manufacturing survey (prior -24.6)
- 10:00 a.m. ET: April NAHB Housing Market Index (prior 44)
- 4:00 p.m. ET: February Net Long-Term TIC Flows (prior $31.90 bln)
META, GOOG, and AMZN boost respective S&P 500 sectors
14-Apr-23 15:05 ET
Dow -202.99 at 33826.61, Nasdaq -66.54 at 12099.72, S&P -16.84 at 4130.65
[BRIEFING.COM] The major indices continued to slowing rise off their lows in recent trading.
The S&P 500 communication services (+0.2%) and consumer discretionary (+0.1%) sector have reclaimed a positive position thanks to their respective mega cap components recovering losses. Namely, Meta Platforms (META 220.73, +0.38, +0.2%) and Alphabet (GOOG 109.48, +1.29, +1.2%) have boosted the communication services sector while Amazon.com (AMZN 102.48, +0.08, +0.1%) is supporting the consumer discretionary sector.
Energy complex futures settled the session higher. WTI crude oil futures rose 0.5% to $82.55/bbl and natural gas futures rose 5.5% to $2.13/mmbtu. On an energy related note, the S&P 500 energy sector (flat) is among the best performers, flirting with its flat lines.
DISH Network underperforms, VFC catches double upgrade out of Goldman
14-Apr-23 14:30 ET
Dow -190.39 at 33839.21, Nasdaq -68.19 at 12098.07, S&P -15.84 at 4131.65
[BRIEFING.COM] The S&P 500 (-0.38%) is currently the "best" performing major average, down just 15 points.
S&P 500 constituents DISH Network (DISH 7.79, -0.55, -6.59%), ServiceNow (NOW 461.00, -22.50, -4.65%), and Public Storage (PSA 292.82, -11.69, -3.84%) pepper the bottom of today's standings. NOW falls after a cautious UBS note, while PSA is a casualty of today's weakness in REITs.
Meanwhile, Denver-based apparel firm V.F. Corp (VFC 22.40, +0.58, +2.66%) is outperforming after Goldman double upgraded to Buy as they believe the stock is nearing an inflection point with the balance of catalysts for the stock now weighted to the upside.
Gold nabs seventh weekly gain despite Friday losses
14-Apr-23 14:00 ET
Dow -240.34 at 33789.26, Nasdaq -103.57 at 12062.69, S&P -24.00 at 4123.49
[BRIEFING.COM] With about two hours to go on Friday the tech-heavy Nasdaq Composite (-0.85%) is still the top lagging major average, pushed lower by a lackluster session from utilities and technology.
Gold futures settled $39.50 lower (-1.9%) to $2,015.80/oz, trimming weekly gains today as the dollar and yields applied some pressure, but able to notch a seventh straight weekly advance.
Meanwhile, the U.S. Dollar Index is up about +0.6% to $101.64.
Rate-hike concerns undercut enthusiasm for bank earnings results
The stock market was waiting anxiously for the Consumer Price Index, then the FOMC Minutes, then the Producer Price Index, and then the earnings reports from banks. All that waiting and all the subsequent reporting has not derailed the stock market this week.
Generally speaking, they have all gone the stock market's way, including the earnings results this morning from JPMorgan Chase (JPM), Citigroup (C), Wells Fargo (WFC), and PNC Financial (PNC), all of which were better than expected. For good measure, BlackRock (BLK) and UnitedHealth (UNH) also topped earnings expectations.
The latter point notwithstanding, the equity futures are relatively subdued.
Currently, the S&P 500 futures are down seven points and are trading 0.1% below fair value, the Nasdaq 100 futures are down 90 points and are trading 0.7% below fair value, and the Dow Jones Industrial Average futures are down 10 points and are trading in-line with fair value.
Why not a stronger sense of relief for the broader market that the aforementioned banks topped expectations? We see several reasons:
- The aforementioned banks aren't really the problem children insomuch as it relates to the banking crisis. That would be the smaller regional banks and we have yet to hear from them.
- Dow component Boeing (BA) is down 6% as it expects reduced production and deliveries of the 737 MAX due to parts problems, according to CNBC.
- The mega-cap stocks are trading lower, mostly with modest losses that, ironically, are likely a function of some rotation out of these "safety" trades and back into the bank stocks (JPM is up 5.8% and WFC is up 2.9%).
- The valuation headwind is still blowing with the S&P 500 trading at 18.3x forward 12-month earnings -- a 6% premium to the 10-year average of 17.3x, according to FactSet.
- The March Retail Sales Report was disappointing. Total retail sales declined 1.0% month-over-month (Briefing.com consensus -0.4%) following an upwardly revised 0.2% decline (from -0.4%) in February. Excluding autos, retail sales were down 0.8% month-over-month (Briefing.com consensus -0.4%) following an upwardly revised unchanged reading (from -0.1%) in February.
- The key takeaway from the report is that sales declines were seen across most retail categories, reflecting weakness in consumer spending on goods that should exacerbate concerns about an economic slowdown that cuts into earnings prospects.
Strikingly, Treasury yields have gone up following the retail sales data and an import-export price index that had deflation written on it. The 2-yr note yield is up 10 basis points to 4.09% and the 10-yr note yield is up seven basis points to 3.52%.
Import prices declined 0.6% month-over-month and were down 4.6% year-over-year. Excluding fuel, import prices were down 0.5% month-over-month and down 1.5% year-over-year. Export prices fell 0.3% month-over-month and were down 4.8% year-over-year. Excluding agricultural products, export prices were down 0.2% month-over-month and were down 5.2% year-over-year.
The Treasury market's response isn't tied so much to the economic data, though, as it is to remarks from Fed Governor Waller (FOMC voter). In a speech this morning, Mr. Waller said that the Fed hasn't made much progress on its inflation goal and that he thinks monetary policy needs to be tightened further and remain tight for a substantial period of time. He allowed for the possibility that he could still adjust his stance, yet the fed funds futures market has latched on to his more hawkish-minded remarks.
According to the CME FedWatch Tool, there is an 85.2% probability of a 25 basis points rate hike at the May meeting versus 67.0% yesterday.
-- Patrick J. O'Hare, Briefing.com
Hartford Financial had a stormy Q1 as P&C insurer sharply cuts EPS guidance (HIG)
Hartford Financial (HIG), a leading provider of property and casualty (P&C) insurance and group benefits, is trading sharply lower after guiding 1Q23 EPS well below expectations last night. The primary culprit for HIG's downside guidance is that current accident year catastrophe losses in its P&C business ballooned to $185 mln (before tax). For a point of comparison, catastrophe losses for this unit totaled $98 mln (net of reinsurance and taxes) in the year-earlier period.
- Major winter storms along the east and west coasts, in addition to severe tornado, wind, and hail weather events across several regions -- most notably in the southern states like Mississippi and Tennessee -- led to a substantial increase in catastrophe losses.
- HIG's weak EPS guidance is rippling across the P&C insurance industry with losses seen in stocks such as Allstate (ALL), Chubb (CB), The Hanover Insurance Group (THG), and American Financial Group (AFG). If HIG's catastrophe losses for Q1 were steeper than feared due to severe weather, then the concern is that earnings from its peers will also take a big hit this quarter.
Taking a closer look at HIG's guidance, the company reported that the combined ratio for the Personal Lines segment jumped to 106.1 compared to 90.4 in the year-ago period.
- The combined ratio measures the amount of money flowing out of an insurance company, relative to earned premiums. As a rule of thumb, a ratio below 100 indicates that the insurer is generating a profit, while a number above 100 indicates that it's paying out more in claims than it's earning in premiums. That doesn't necessarily mean that the company is unprofitable overall because the metric doesn't consider investment income. However, the higher the ratio is, the less efficient an insurer is with using its premiums to drive earnings growth.
Prior to the collapse of Signature Bank and SIVB Financial, HIG was a steady stock that performed quite well in a turbulent market.
- From the beginning of 2022 through the end of February 2023, the stock gained about 12% compared to a loss of nearly 17% for the S&P 500. Its healthy dividend, which is currently sporting a yield of 2.4%, and its long track record of profitability, are two qualities that work in its favor.
With shares falling by roughly 12% since early March, including today's drop, we think that HIG could land on the radars of more value and income-oriented investors. While Q1 shapes up to be a rough quarter for the company, the overall consistency of its business should eventually come back to the forefront.
Boeing descending on news of reduced 737 MAX deliveries due to parts issue (BA)
Dow component Boeing (BA -6%) is seeing its shares descend today, weighing meaningfully on the Dow Jones Industrial Average. Last night, according to CNBC, the airplane manufacturing behemoth warned about reducing 737 MAX deliveries over the near term due to a parts issue emanating from one of its major suppliers, Spirit AeroSystems (SPR -20%), which is seeing an even steeper decline today.
The issue reportedly affects BA's most popular 737 MAX 8 jets, as well as some other 737 models. It will also only impact planes in production and storage, meaning that BA's in-service fleet may continue operating. The problem will not just hurt BA either, as many of its customers will experience the delay, including major airlines like Southwest (LUV), which holds the most active MAX 8 aircraft at 156, according to ch-aviation, American Airlines (AAL), and United Airlines (UAL). Although UAL reportedly noted that BA's issue will not significantly impact its planes for the rest of 2023.
- Yesterday's news could not come at a worse time for BA, as its reduction in 737 MAX deliveries coincides with a broader shortage of jets across the industry. SPR, which also supplies to Airbus (EADSY), commented earlier this year that at the onset of the pandemic, much of its skilled workforce entered retirement, decreasing the proficiency of its overall workforce compared to before COVID. Meanwhile, the company endured numerous part shortages. This sour combination drove the firm to fall behind schedule on deliveries. Although SPR has seen massive improvements since last year, it still expects choppiness over the next few quarters.
- BA's rather bullish comments regarding the aircraft just last month make the reduction in deliveries much more discouraging. Although BA did warn that it was still working with its suppliers to become more stable and predictable, it remained confident in achieving its guidance of 400-450 737s this year. Additionally, BA stated that demand for the 737 was robust, which could translate to lost profits due to reduced deliveries.
- BA's 737 MAX has also continually driven overall growth for multiple quarters in a row. In FY22, BA's excellent 800+ orders were fueled by the 737 MAX and 787, underscored by a historic deal with UAL in December.
The good news is that despite the hiccup, shares are holding up decently, currently finding support around the $200 mark, which is above 2023 lows of $192. It is possible the market expected further disruptions throughout 2023 after CEO David Calhoun cautioned that being stable month-to-month this year would be incredibly challenging, setting realistic expectations of producing 31 MAX planes a month despite being staffed to manufacture more.
The main takeaway is that BA's parts issue is a concern. However, BA has seen this story before, having dealt with numerous production challenges over the years. Although the total impact has yet to be determined, we think BA has a strong history that suggests it will persevere, possibly without significant damage to its bottom line.
Wells Fargo deposits a solid upside report, easing anxieties revolving around banking system (WFC)
Wells Fargo (WFC) is contributing to the bullish bias filtering through to the financial sector, and the broader market, after reporting better-than-expected 1Q23 results and reaffirming its expectation of generating net interest income growth of about 10% for FY23. WFC's upside results, along with strong earnings reports from JPMorgan (JPM), PNC (PNC), and Citigroup (C), are soothing investors' anxieties that there are deeper cracks in the banking system following the collapses of SIVB Financial and Signature Bank.
While there are signs that rising interest rates and inflation are creating some trouble for WFC's customers, such as a 17% jump in net charge-offs to $564 mln, the overall fundamental picture remained healthy in 1Q23.
- The upside of higher rates is that WFC earns a wider spread between the interest it collects on loans and the interest it pays on deposits. In turn, this generates higher net interest income, which climbed by 45% to $13.3 bln, topping analysts' estimates.
- In addition to a 1.04% yr/yr increase in net interest margin to 3.20%, thanks to the Fed's interest rate hikes, WFC's total loans grew by 4% to $948.7 mln. That loan growth came despite a 42% plunge in home lending as WFC continues to step away from a cooling housing market. Within the Commercial Banking segment, middle market banking soared by 73% due to higher rates and higher loan balances.
WFC's strong net interest income growth helped to offset an 8% decline in deposits and a $643 mln increase in the allowance for possible credit losses.
- On the former item, there have been concerns that even large banks like WFC would experience a meaningful outflow of money as people seek higher returns from money market funds and other investments to help combat inflation. Furthermore, savings accounts have been drained a bit as consumers spend the stimulus money received during the pandemic. However, the deposit decline at WFC was not as severe as some had feared.
- On the former item, WFC's provision for credit losses soared to $1.2 bln, reflecting the bank's caution revolving around its commercial real estate portfolio, as well as its credit card and auto loans. Non-performing assets increased by 7% to $379 mln, principally due to higher commercial real estate nonaccrual loans.
Lastly, CEO Charlie Scharf is orchestrating a turnaround plan for WFC that includes better cost controls. Those efforts are bearing fruit as the company's efficiency ratio decreased to 66% from 78% in the year-ago quarter. A lower number indicates that the bank is spending less to generate its income.
The main takeaway is WFC's upside results provided a sigh of relief, indicating that the bank is in good condition and that the severe troubles that plagued SIVB Financial and Signature Bank seem to be having a limited impact on the bigger banks.
UnitedHealth drops on fears surrounding its ability to fulfill short and long-term EPS targets (UNH)
Despite delivering another quarter of healthy top and bottom-line upside in Q1, UnitedHealth's (UNH -2%) recent rally, sparked by the announcement two weeks ago of a 1.12% cut to Medicare Advantage (MA) 2024 rates, is on hold today. UNH also raised its FY23 EPS outlook.
So why are shares dropping? In just the past two weeks, UNH surged by over 11%, an out-of-the-ordinary rally for the slow and steady health insurer giant, spurring profit-taking activity today. Additionally, UNH's medical care ratio, the percentage of premiums used to cover claims, edged 20 bps higher yr/yr. However, UNH has previously mentioned that its medical care ratio will increase as its government programs increase. The company's operating cost ratio of 14.8% also represented a minor uptick from 14.2% in the year-ago period as it continues its integration of UnitedHealthcare, Optum Rx, Optum Health, and Optum Insight businesses, as well as ongoing investment activities.
Meanwhile, although UNH has more clarity surrounding MA, the rate cut may harm its EPS targets as it would need to strike a balance between maintaining attractive benefits to grow its membership while still keeping margins stable. However, management was not too worried, stating that this was not the first time it had to navigate a similar environment. CEO Brian Thompson also noted that the company feels very good about its market position and expects to lead the marketplace with the strong positive momentum it has shown over the years.
- Shifting to Q1 numbers, adjusted EPS grew 14.0% yr/yr to $6.26 on top-line growth of 14.7% to $91.93 bln, both of which easily topped consensus. Optum and UnitedHealthcare each saw double-digit gains in the quarter, with Optum crushing overall growth, jumping 25% yr/yr.
- Management noted that care patterns remain consistent with recent trends, further relieving any lingering fears of an uptick in claims due to deferred care during the pandemic. Physician office activity continues trending toward historic levels, while some categories like pediatrics and ER visits remain historically low. CFO John Rex stated that the company keeps a close eye on indications that could signal a change in patterns but has yet to see any data point to changes.
- The solid Q1 numbers combined with robust growth in the number of individuals served, which improved by 1.2 mln, fueled UNH's increased FY23 earnings outlook. The company expects EPS of $24.50-25.00, a $0.10 hike from its prior guidance.
- Furthermore, UNH reiterated its long-term adjusted EPS growth rate of +13-16%.
UNH's consistency was on full display in Q1, posting another quarter of sizeable top and bottom line upside while raising its FY23 earnings forecast. Still, the market is concerned about UNH's ability to fulfill its short and long-term EPS targets in the wake of the MA changes, taking profits off the table. Nevertheless, given UNH's track record, this reaction may be overblown.
Finally, UNH's results set the tone ahead of its competitors' Q1 reports over the next few weeks, including Elevance Health (ELV), Centene (CNC), Molina Healthcare (MOH), Humana (HUM), and Cigna (CI).
JPMorgan Chase banks higher on huge Q1 upside; says US economy on generally healthy footing (JPM)
JPMorgan Chase (JPM +8%) is banking higher today after it reported huge upside this morning. After EPS misses in Q1 and Q2 of last year, JPM has now posted three EPS beats and they have gotten larger each quarter with Q1's beat being JPM's largest since 3Q21. But it was more than just the headline numbers, JPM also eased concerns with its comments about the macro picture.
- In its Consumer & Community Banking (CCB) segment, revs rose a healthy 35% yr/yr to $16.46 bln. Banking & Wealth Mgmt was the standout with revs surging 67% yr/yr to $10 bln, driven by higher deposit margins. Card Services & Auto was another bright spot with revs up 14% to $5.7 bln, driven by higher interest income on higher revolving balances. Not surprisingly, Home Lending revs fell 38% yr/yr to $720 mln as mortgage demand has slowed.
- Corporate & Investment Bank (CIB) revenue was flat yr/yr at $13.6 bln. Equity Markets revenue was down 12% yr/yr to $2.7 bln against a strong Q1 last year. Investment Banking revenue was $1.6 bln, down 24%. Commercial Banking (CB) revs jumped 46% yr/yr to $3.51 bln while Asset & Wealth Mgmt (AWM) revs rose 11% to $4.78 bln. As you can see, most segments performed quite well.
- The provision for credit losses was $2.3 bln, reflecting net charge-offs of $1.1 bln and a net reserve build of $1.1 bln, largely driven by a deterioration in the weighted-average economic outlook. This was pretty similar to Q4's PCL of $2.3 bln, reflecting a net reserve build of $1.4 bln and net charge-offs of $887 mln. We think investors were pleased this was not worse.
- JPM noted that consumer spending remained healthy in Q1 with combined debit and credit card sales up 10% and card loans up 21%. In CIB, Markets revenue fell 4% but it was lapping a very strong prior year. Also, JPM focused on supporting clients as they navigated volatile market conditions. IB fees remained challenged for the industry, although JPM says it significantly outperformed the overall wallet. In CB, JPM posted record revenue with exceptionally strong Payments revenue, up 98%.
- Management also provided a somewhat positive macro outlook, saying that the US economy continues to be on generally healthy footing. Consumers are still spending and have strong balance sheets, and businesses are in good shape. However, JPM also said that the storm clouds that it has been monitoring for the past year remain on the horizon. The banking industry turmoil adds to these risks. JPM argues that the banking situation is distinct from 2008 because it has involved far fewer players and fewer issues, but financial conditions will likely tighten as lenders become more conservative, and this may slow consumer spending.
Overall, investors are very happy with JPM's robust Q1 results. We think the huge EPS and revenue beat coupled with a sequentially flat PCL number is easing investor concerns. We also think investors were bracing for a darker economic outlook from JPM for the balance of 2023. JPM did caution about dark clouds looming, but this language was generally similar to past comments. All in all, this was a very good quarter for JPM and eased investor fears. This bodes well for other banks set to report soon.
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