JPMorgan Chase expects net interest income (NII) excluding its markets business of $25.5 billion in the fourth quarter and roughly $97.2 billion for 2026, and guides to about $107 billion for 2027, up 10%. CFO Jeremy Barnum said about a quarter of the roughly $5 billion increase is tied to the yield curve. Bank of America began 2026 expecting NII growth of 5% to 7%, but has raised its guidance several times and now expects roughly 8%, with at least another 8% growth in 2027. About 26% of its deposits were non-interest-bearing at the end of the third quarter, so they will not reprice higher when the Fed raises rates. The article notes the outlook depends on how many times the Fed hikes, with the market pricing in three hikes through June 2027, a view that could change with the Iran war and inflation.
Summary written by Upside AI from the original article. Read the source for full details.
Read the original on Yahoo Finance ↗
Keywords
JPMorganbanksinterest ratesFed
Open a keyword to see other news on the same topic.
Related tickers and likely impact
JPM
▲ Likely positiveJPMorgan Chase
Relevance: low
| Market | US stocks |
|---|---|
| Sector | Financials |
| Industry | Diversified Banks |
| Market cap | $891.9B |
| Close on 10/20/2026 | 335.39 |
| Change that session | +0.56% |
Impact is scored by AI from the headline and may be wrong. It is not investment advice.
Related news
- Largest US bank trading assets near $3.7 trillion, St. Louis Fed says
Trading assets at the largest U.S. banks neared $3.7 trillion in Q2 2026, almost 50% above the end of 2024, according to the St. Louis Fed. The analysis found these assets have doubled since the end of 2019 and now make up about 20% of assets at eight U.S. global systemically important banks, including Bank of America, Citigroup, Goldman Sachs and JPMorgan Chase. Trading revenue reached $117 billion in 2025, after falling to $62 billion in 2022. The author linked the size of trading books to a U.S. stock market valued at $75.3 trillion and $51.4 trillion in fixed income outstanding, as well as a rule adopted in 2025 that lowered leverage-ratio capital requirements and expanded balance-sheet capacity. The analysis did not quantify how much of the increase resulted from that rule.
- US bank stock longest losing streak since 2008 clashes with earnings picture
US bank stocks have posted their longest losing streak since the 2008 financial crisis, with the KBW Nasdaq Bank Index falling for six straight weeks and losing 11% since early September, even though the largest lenders JPMorgan Chase (JPM), Bank of America (BAC), Citigroup (C) and Wells Fargo (WFC) reported solid results. The four banks set aside $7.6 billion for credit provisions in the quarter, down about 3% from a year earlier, while actual loan losses fell 5% and lending grew nearly 10%. Credit managers are more worried, however: about 60% expect corporate defaults to rise over the next 12 months, and 85% expect wider spreads on North American junk bonds over the next three months, both sharply higher than in the prior survey. Morgan Stanley still calls bank credit conditions “benign” apart from isolated commercial weakness, while investors fear that persistently high interest rates could squeeze borrowers.
- JPMorgan Chase: 3 Key Takeaways for Long-Term Investors
JPMorgan Chase reported third-quarter 2026 net income of $15.3 billion on revenue of $50.9 billion during its earnings call. Management cut quarterly share repurchases to $1 billion, saying it sees greater long-term value in funding organic growth and can redeploy capital at strong returns over time. The bank uses AI internally to improve efficiency but blocks third-party automated agents from its internal networks due to privacy and data security risks. For 2027, management forecasts net interest income excluding markets of $107 billion, up about $5 billion from around $102 billion for 2026, driven by balance sheet growth and higher forward yield curves. CFO Jeremy Barnum added that the consumer has remained quite resilient despite several headwinds.
- Zacks Earnings Trends Highlights: JPMorgan, Citigroup, Bank of America and Wells Fargo
Zacks' earnings trends report shows Q3 earnings for the 32 S&P 500 members that have reported so far are up 52.5% year on year on 15.8% higher revenue, with 81.3% beating EPS estimates and 71.9% beating revenue estimates, though Micron's outsized gains boosted the growth rate. Earnings growth is expected to be double-digit for an eighth straight quarter, with 14 of 16 Zacks sectors forecast to grow. Despite headline earnings misses at JPMorgan and Bank of America, the big banks posted strong Q3 results, with net interest income up at all four and equities trading strong while fixed-income trading fell. Their shares have still weakened, as investors weigh interest rate volatility and a possible slowdown in trading revenue. Reported results covering 33% of the Finance sector's market capitalization show earnings up 10%.
- AI Has Driven Bond Yields Higher, Says JPMorgan's Priya Misra — Sees Bonds As Hedge Against AI Trade
JPMorgan Asset Management's Priya Misra says AI investment has helped push bond yields higher, partly due to economic resilience and AI-driven competition for capital, and that much of the rise in longer-term yields reflects higher real rates rather than inflation expectations. The 10-year U.S. Treasury yield was around 5.09% on Friday morning, down from about 5.24% at the end of the previous week as AI stocks came under pressure. Misra sees markets pricing in three Fed hikes as overdone, attributes inflation mainly to supply shocks such as tariffs and oil, and describes AI as a structural demand shock. She still views U.S. Treasuries as a safe haven and high-quality fixed income yielding 6% to 7% as an attractive hedge against weakness in the AI trade, while warning that sufficiently high real rates could cause something to break.
- Midsize lenders are seeing high loan demand right now
Big banks posted weaker-than-expected third-quarter revenue from trading and M&A advisory, while midsize lenders such as KeyCorp, Mercantile Bank and Atlantic Union Bank reported strong loan demand from midsize companies, particularly large health care firms and regional employers. Nate Tobik of CompleteBankData says many loans taken out after the pandemic at low rates are now up for refinancing at much higher rates. LPL Financial's Jeffrey Roach says demand remains stable because unemployment has not risen and many banks are keeping rates competitive. Mayra Rodríguez Valladares of MRV Associates warns that third-quarter results did not fully reflect the Federal Reserve's rate hikes, and that loan demand could fall and banks could become pickier about borrowers if the Fed keeps raising rates.
Related markets
Latest news
- Meta’s (NASDAQ:META) Q3 2026 sales top estimates, quarterly revenue guidance slightly exceeds expectations
Meta Platforms (NASDAQ: META) reported Q3 revenue of $64.6 billion, up 26.1% year on year and about 2% above estimates. Revenue guidance for the Q4 midpoint is $74.5 billion, 1.2% above analyst expectations. GAAP EPS of $3.83 was 29.9% below consensus, due to a $9.89 billion charge tied to an agreement with 52 attorneys general to resolve teen mental health litigation, with payments of up to about $18.59 billion; excluding it, EPS would have been $7.40. Operating margin fell to 20.1% from 40.1%, and free cash flow was -$2.12 billion. Daily active people reached 3.64 billion, up 100 million year on year.
- A SpaceX-Tesla megamerger could benefit both companies and Elon Musk's personal fortune
SpaceX shares rose 8% and Tesla 3.5% after Elon Musk said each company had formed special committees to discuss a possible combination. At current market values, the merged company would be worth about $3.5 trillion, the largest deal ever, and Musk argues it makes sense because both businesses rely heavily on artificial intelligence. Musk owns 11% of SpaceX and 19% of Tesla, and a change-in-control provision in Tesla's pay plan could treat many performance targets as met in a merger, which would make him richer. Although the shares are very expensive by most measures, most analysts still call them a bargain, and many work for banks hoping to win Musk's business. Democrats have called for investigations into SpaceX's federal contracts and could scuttle plans if they win big in next month's midterm elections.
- Netflix Is Down 38% Since Completing Its 10-For-1 Stock Split. Here's Why the Sell-Off Is Worsening After Its Latest Earnings.
Netflix shares are down 37.9% since the 10-for-1 stock split was completed on November 17, 2025, as of the October 20 close. After its third-quarter 2026 report, the stock fell 5.9% to $64.62 in after-hours trading, which would mark a new two-year low. Revenue rose 11.8% year over year, and operating margin widened from 28.2% to 34.6%, but the company now expects $2.7 billion in full-year ad revenue, down from $3 billion, due to a slower rollout of ad product capabilities. Its 2026 revenue forecast of $51.1 billion sits 0.2% below the prior midpoint, and the article also points to competition from YouTube, a third price increase in under three years, and a valuation of 17 times 2027 earnings. Netflix ended the quarter with $8.19 billion in cash against $12.66 billion in long-term debt.
- Where Will Novo Stock Be in 10 Years?
Novo, a Denmark-based pharmaceutical company, reached an all-time high in 2024 but has since faced clinical and commercial setbacks and lost substantial market value over the past two years. Its diabetes products, including Ozempic and Rybelsus, and its obesity drug Wegovy remain core, but U.S. patents on the active ingredient in these drugs expire in 2032, potentially opening the door to cheaper generics. Near-term catalysts include CagriSema, which could be approved by year-end and combines semaglutide with cagrilintide, though it fell short of the 25% mean weight loss Novo had hoped for. The pipeline also includes amycretin, UBT251, and several oral weight loss candidates. The author sees the pipeline as deep but warns of rising competition from dozens of weight-loss drugs, slower market growth, and possible U.S. drug price negotiations.
- NextEra Energy ( NEE ) Q3 2026 Earnings Call Transcript
NextEra Energy reported third-quarter adjusted earnings per share of $1.24, up 9.7% year over year. Florida Power & Light's net income reached $1.62 billion, versus $1.463 billion a year earlier, while adjusted earnings at NextEra Energy Resources rose 13% to $1.247 billion. The renewables and storage backlog reached 36.7 gigawatts, and FPL raised its large load target to 8 gigawatts by 2032. Shareholders have approved the pending combination with Dominion Energy, with state regulatory reviews expected to conclude in early 2027. Management maintained its 2026 adjusted earnings guidance and is targeting the high end of the range, even though wind generation in Q4 is projected to fall to 90% to 95% of the long-term average due to El Niño.
- Amazon logistics automation offers long-term margin gains, Jefferies says
Jefferies says Amazon's warehouse automation and expanding logistics network could lift retail margins long term by reducing labour dependence. Amazon has deployed over 1 million robots, but only 40% to 45% of its US small-sortable fulfillment centers are highly automated, leaving room for growth. A US$1 hourly wage rise would add about US$1.1 billion to costs, and Amazon has around US$27 billion of visible capex planned for automation and delivery. Jefferies sees third-party parcel delivery as a growth area, with US delivery stations possibly growing from about 575 to 950 by 2030 and early trials showing 20% to 25% savings for shippers. Grocery is harder given US$10 to US$12 delivery cost per order, though the broker sees potential in Amazon's planned Illinois hybrid retail concept expected in 2028.
Get the briefing on Telegram or Zalo
Join the Upside Telegram channel or Zalo group for the Vietnam stocks and gold briefing at 8:00 and 19:00 (Vietnam time) on trading days, plus a weekly wrap on Saturday morning.