JPMorgan Beats: Market Happenings For Friday, October 12, 2012

Premarket, futures are up. Gainers this morning include DF (+4.10%), WYNN, APOL, SBUX and FFIV while losers include AMD (-9.69%), WFC, STX, WDC and KMI.

The Market

JPMorgan Chase, the country’s biggest bank by assets, reported a record quarterly profit this morning. The bank blew away analysts’ expectations with earnings of $1.40 per share, far exceeding the $1.21 estimates. Revenue rose 6 percent to $25.1 billion, beating expectations of $24.4 billion. Earnings were helped because the bank set aside less money for bad loans. It set aside $1.8 billion for potential loan losses, down 26 percent from $2.4 billion a year ago. Revenue from mortgage loans was up 29 percent. Low interest rates, as well as the government program called Home Affordable Refinance Programs, encouraged homeowners to refinance.

Investors will be combing through the report to find additional details about this year’s earlier London Whale multi-billion-dollar trading loss.

European stocks were lower in morning trade and Asian markets ended mixed.

Intel (INTC) is at another new 52 week low. There are no Dow stocks showing as new 52 week highs.

The national average price of gasoline is down two-tenths of a cent to $3.813 per gallon. Last Friday we were at $3.789 per gallon.

One last note. I am so ready for the election to be over.

Earnings Reports

Earnings reports (estimates): WFC-Wells Fargo ($0.87), JPM-JPMorgan (1.21), WBS-Webster Financial (0.46).

Financial Calendar

0830 ET Sep PPI expected +0.8% m/m and +1.8% y/y, Aug +1.7% m/m and +2.0% y/y. Sep core PPI expected +0.2% m/m and +2.5% y/y, Aug +0.2% m/m and +2.5% y/y.

0955 ET Early-Oct U.S. consumer confidence (University of Michigan) expected -0.3 to 78.0, Sep +4.0 to 78.3.

1235 ET Richmond Fed President Jeffery Lacker speaks on “Challenges to Economic Growth” at University of Virginia in Charlottesville, VA.

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