TLDR:
- Jamie Dimon urges market to “take a breath” amid current tariff-induced turmoil
- JPM set to report Q1 2025 earnings on April 11 with EPS expected at $4.63
- Dimon sees recession as “likely outcome” but says JPM will be “fine” regardless
- Wall Street gives JPM stock Moderate Buy rating with $270.31 average price target
- Options traders expect 4.92% stock move in either direction after earnings
JPMorgan Chase CEO Jamie Dimon is calling for calm as markets react to trade tensions, just as the banking giant prepares to release its first-quarter earnings report. The head of America’s largest bank shared insights on the economy and markets during a Wednesday interview.
“Settle down, take a breath,” Dimon advised during his appearance on Fox Business’s “Mornings with Maria.” His comments come as markets have been roiled by tariff concerns.
Dimon emphasized that the current market situation doesn’t compare to the 2008 financial crisis. Back then, he noted, “the world was massively over-leveraged.”
To ease market concerns, Dimon suggested the government needs to show progress on trade deals. While he acknowledged it’s “perfectly reasonable” to say some trade practices are unfair, he cautioned that agreements “don’t get done overnight.”
Economic Outlook
Despite his call for calm, Dimon didn’t paint an entirely rosy picture. He warned that slower economic growth was “inevitable” and that he sees a recession as a “likely outcome.”
The banking chief hasn’t yet observed increased defaults but said plainly, “I expect them.”
Dimon pointed out that massive fiscal spending during COVID helped sustain the U.S. economy. He believes America is “probably doing the best” among advanced economies partly because of this government spending.
With the right policies, Dimon suggested the U.S. “could be growing by 3% per year” if “we get our act together.”
Market Impact
The continuing trade tensions are creating real consequences, according to Dimon. He pointed to canceled IPOs and delayed loans as examples of “cumulative damage.”
This environment is “bad for small businesses, middle-sized companies,” Dimon explained. He even noted that JPMorgan has lost some bond deals to local banks recently.
Despite these challenges, Dimon projected confidence about his own institution. “JPMorgan is going to be in fine shape, almost no matter what happens,” he stated.
The banking titan competes globally, with “hundreds of trillions of dollars per day moving around the world.” Dimon mentioned that Chinese banks exceed JPMorgan Chase in assets, though not in market capitalization.
Earnings Expectations
JPMorgan Chase is set to release its first-quarter 2025 financial results on April 11. Market analysts are watching closely for signs of how the bank is navigating the current economic climate.
Wall Street expects the company to report earnings per share of $4.63. This would represent a 4.3% increase year-over-year.
Revenue is projected to reach $43.99 billion, though this would mark a 34% decrease from the same quarter last year.
JPM stock has declined about 1% year-to-date. Analysts attribute this to slower loan growth, rising technology investment expenses, and increasing regulatory scrutiny of large banks.
Piper Sandler analyst R. Scott Siefers recently reduced his price target from $275 to $270 but maintained a Buy rating on JPM stock. Siefers believes JPMorgan is well-positioned despite market uncertainty.
The analyst highlighted JPMorgan’s large Markets business as a potential counterbalance to weakness in Investment Banking. He also praised the bank’s strong credit, liquidity, and capital position.
Options traders are preparing for a possible stock move following the earnings announcement. Current options pricing suggests traders expect a 4.92% move in either direction after the report.
Wall Street has given JPM stock a Moderate Buy consensus rating. This is based on 11 Buy recommendations and seven Hold ratings assigned in the last three months.
The average JPMorgan price target stands at $270.31, implying a potential 15.35% upside from current levels.
JPMorgan’s Commercial and Investment Bank segment generated $17.6 billion in revenue in Q4 of last year. Investors will be watching to see if this segment maintains its strength in the upcoming report.
The banking chief wrapped up his comments with urgency about resolving trade issues: “Don’t let this go on too long, because it’s causing cumulative damage, especially to the United States.”
