JP MORGAN Chase yesterday injected renewed confidence into the financial sector and helped push the Dow through the 10,000 barrier as it kicked off the US banks’ third-quarter results season by reporting its biggest profit in more than two years.
The $3.6 billion (€2.4 billion) in net income earned by JP Morgan in the three months to the end of September beat analysts’ expectations and sets the bar for rivals Goldman Sachs, Citigroup and Bank of America, which report later this week.
The surprisingly strong results from JP Morgan, coupled with better earnings than expected from Intel, offset disappointing news on US retail sales and sparked a broader market rally.
The performance of JP Morgan, which has navigated the crisis better than most, highlighted the divide between Wall Street’s resurgence and the continuing deterioration in the health of US consumers.
JP Morgan’s investment bank accounted for more than half of group profits, driven by revenues in its fixed-income unit and other trading businesses. – (Copyright The Financial Times Limited 2009)
