JP Morgan Chief Optimistic About US Economy

J.P. Morgan chief Jamie Dimon on Tuesday praised the strength of the U.S. consumer following the largest U.S. bank’s strong quarterly earnings report.

“We continue to see positive momentum with the U.S. consumer — healthy confidence levels, solid job creation and rising wages — which are reflected in our Consumer & Community Banking results,” Dimon said in the earnings statement. “Double-digit growth in credit card sales and merchant processing volumes reflected healthy consumer spending and drove 8% growth in credit card loans, while mortgage and auto originations showed solid improvement, and we continued to attract new deposits, up 3%.”

J.P. Morgan reported better-than-expected second-quarter results before the bell, largely attributed to strong consumer spending. The bank posted earnings per share of $2.82 on revenue of $29.57 billion. Wall Street expected earnings per share of $2.50 on revenue of $28.9 billion, according to Refinitiv. The shares traded 1.7% lower in Tuesday’s premarket on the bank’s worse-than-expected forecast for net interest income.

Double-digit growth in credit card sales and merchant processing further demonstrated that U.S. consumer spending is healthy. Credit card sales volume rose 11% this quarter and merchant processing volume increased 12%, the bank said.

Dimon was less optimistic about the global economy but wasn’t outright bearish either.

via CNBC

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza