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. (NYSE:JPM). Competitors: Citibank (NYSE:C), Bank of America (NYSE:BAC), Wachovia (NASDAQ:WB), Wells Fargo (NYSE:WFC). ETFs: Financial Select Sector SPDR (NYSEARCA:XLF), WisdomTree High-Yielding Equity (NYSEARCA:DHS), WisdomTree LargeCap Dividend Fund (NYSEARCA:DLN), KBW Bank ETF (NYSEARCA:KBE), iShares Dow Jones US Financial (NYSEARCA:IYF), iShares Dow Jones US Financial Svc. (NYSEARCA:IYG), Regional Bank HOLDRS (NYSEARCA:RKH), Vanguard Financials ETF (NYSEARCA:VFH),
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