For the eighth straight quarter, JPMorgan Chase & Co. reported estimate-beating results yesterday before the markets opened, sending shares slightly higher in composite trading. The third largest U.S. bank by market cap added $0.04, 0r 0.08% to $48.43 on a 68% increase in fourth-quarter net income resulting from strong performance from its investment banking unit as well as profits resulting from the sale of its corporate-trust business. On the downside, JPMorgan's consumer banking division, responsible for consumer mortgages and college loans, pulled in earnings that were lower by 11% from the year earlier period. By the numbers, profits climbed to $3.91 billion, or $1.09 a share, from $2.64 billion, or EPS of $0.74 during the year earlier period. The results beat the $0.95 average estimate compiled by Bloomberg; Reuters' consensus estimates were for EPS of $0.94. Fourth-quarter revenue rose to $16.9 billion, a gain of 14% over the prior year period; the consensus estimate was for revenue of $15.8 billion.
• Sources: Press Release, Bloomberg, Reuters, AP
• Related commentary: JPMorgan: Outlook For 2007 Positive, JP Morgan Gets a Fan in Morgan Stanley, Cramer's Take on JPM
• Potentially impacted stocks and ETFs: JPMorgan Chase & Co. (JPM). Competitors: Citibank (C), Bank of America (BAC), Wachovia (WB), Wells Fargo (WFC). ETFs: Financial Select Sector SPDR (XLF), WisdomTree High-Yielding Equity (DHS), WisdomTree LargeCap Dividend Fund (DLN), KBW Bank ETF (KBE), iShares Dow Jones US Financial (IYF), iShares Dow Jones US Financial Svc. (IYG), Regional Bank HOLDRS (RKH), Vanguard Financials ETF (VFH),
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