Bank Giants JPMorgan Chase, Wells Fargo, and Citigroup Report Earnings

JPMorgan CEO Jamie Dimon said it's "almost embarrassing" being an American

Managing Editor
Jul 14, 2017 at 10:05 AM
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U.S. stocks have built on yesterday's momentum as earnings season kicks off. In focus are bank stocks, with a handful of big names reporting earnings today. Among specific equities on the move are prominent bank stocks JPMorgan Chase & Co. (NYSE:JPM)Wells Fargo & Co (NYSE:WFC), and Citigroup Inc (NYSE:C). Here's a quick look at what's moving shares of JPM, WFC, and C.

JPMorgan CEO Pops Off on 'Political Gridlock'

JPM stock is down 1.9% to trade at $91.29. While the company's earnings were better than expected, the banking giant also lowered its forecast for lending income. Meanwhile, on a conference call, JPMorgan Chase CEO Jamie Dimon popped off about the "political gridlock," stating, "It's almost embarrassing being an American citizen ... and listening to the stupid [expletive] we have to deal with in this country."

JPMorgan stock has had a respectable year, shooting to an all-time high of $94.51 on July 6, and tacking on 47% year-over-year. The stock could now find support in the $90-$91 region. Furthermore, JPM's Schaeffer's Volatility Scorecard (SVS) sits at 84, which indicates JPMorgan stock has tended to exceed option traders' volatility expectations during the past year.

Wells Fargo Stock Dips After Revenue Miss

Wells Fargo stock is down 2.3% to trade at $54.31, after the company's second-quarter sales fell short of expectations. What's more, Wells Fargo yesterday was mentioned by Fed Chair Janet Yellen, as the central banker told the Senate Banking Committee that she's "prepared to take enforcement actions" against Wells Fargo directors if that's where the investigation into fake accounts leads.

WFC shares have struggled to stay above breakeven in 2017, though its 80-week moving average has emerged as support. In the options pit, traders were flocking to calls ahead of earnings. According to data from the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), WFC has a 10-day call/put volume ratio of 1.53, which is higher than 72% of all others from the past year.

Citigroup Stock Inches Lower Despite Earnings Beat 

Citigroup stock is down 1.1% to trade at $66.28, despite earnings and revenue that beat analysts' expectations. Further, Citigroup CFO John Gerspach touted an "outstanding performance in investment banking this quarter." It's been a great year for the banking giant, the shares of which are up nearly 12% year-to-date, and recently touched an eight-year high of $68.91 on July 3.  

Recent options traders are likely hoping Citigroup stock can shake off the sector headwinds. The stock's 10-day call/put volume ratio on the ISE, CBOE, and COMP stands at a lofty 3.85 -- higher than 95% of all other readings from the past year. In other words, recent options buyers picked up bullish bets over bearish at an accelerated clip.


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