JPMorgan Chase & Co.’s stock was under pressure Tuesday despite a strong quarter, with Wall Street analysts largely viewing the decline as profit-taking rather than a fundamental change in outlook. Bank stocks fell nearly 3% on Tuesday after the bank reported better-than-expected fourth-quarter results, with higher-than-expected revenue from its trading operations. The company said net income fell 7% to $13.03 billion, or $4.63 per share, due to a previously announced $2.2 billion provision related to the acquisition of the Apple Card loan portfolio from Goldman Sachs. Analysts said investors may be digesting inline guidance and lingering regulatory risks that overshadowed the strong report. Bank of America reiterated its buy rating on JPMorgan following the results, adding that it will take advantage of short-term weakness to increase its position. However, the company noted that uncertainty surrounding possible interest rate caps on credit cards could make some investors cautious. Bank of America said it would “take advantage of potential weakness from short-term profit taking to buy stocks.” “It’s unclear whether management’s comments will alleviate concerns over credit card interest rate cap risks that could keep investors in wait-and-see mode.” President Donald Trump recently declared a 10% cap on the interest rates that U.S. credit card companies can charge customers. Many believe such a move would reduce Americans’ credit card accounts and lead to a drop in spending in the U.S. economy. Piper Sandler analysts said results would have been even stronger excluding one-time items, estimating core earnings of $5.28 per share. They highlighted strong growth in net interest income, core credit costs and expenses, and pointed to management’s newly released 2026 net interest income forecast as a likely catalyst for an overall upward revision. “There will likely be some upward pressure on the market’s net interest income expectations, which is a good thing. Overall we have a solid Q/outlook and we expect stock prices to respond well,” Piper Sandler said in a note. JPMorgan reaffirmed its forecast for 2026 net interest income excluding markets of about $95 billion, expenses of about $105 billion and net charge-offs on good cards of nearly 3.4%, according to Evercore ISI. “The benefits of fiscal stimulus, deregulation, and lower interest rates could help sustain a favorable environment. …Taken together, this is a good enough quarter and outlook for people to continue to love JPM, and it should set the bar high enough for other companies to match it,” Evercore ISI said. —CNBC’s Michael Bloom contributed reporting.
