JPM

Investing.com -- JPMorgan upgraded shares of 3M and Emerson Electric to Overweight from Neutral ahead of upcoming quarterly earnings, citing improving growth prospects, supportive end-market trends and expectations for stronger earnings momentum into 2027. For 3M, the brokerage raised its December 2026 price target to $180 from $178, saying the company is entering a phase where revenue growth should increasingly support earnings expansion. JPMorgan expects second-quarter organic growth to exceed 3%, driven by strength in data centers, semiconductors and industrial markets, offsetting continued weakness in consumer electronics and automotive. It also expects pricing power, productivity gains, portfolio optimization and lower PFAS-related costs to support margins through 2027. JPMorgan forecasts second-quarter adjusted EPS of $2.26, slightly above Wall Street estimates, with organic growth of 3.2% and operating margins of 24.6%. The bank believes strong order trends, a growing backlog and improving demand across all three business segments position 3M for accelerating growth in the second half of 2026. For Emerson Electric, JPMorgan raised its rating to Overweight while maintaining a $157 price target, arguing that concerns over the pace of second-half growth overlook the company's sizable backlog and improving process industry cycle. The brokerage expects long-cycle projects, including power, LNG, semiconductor and aerospace investments, to support revenue growth, while Middle East rehabilitation work could provide additional upside not included in company guidance. The bank said Emerson's backlog increased 9% year over year, providing visibility into a sharp acceleration in organic growth during the second half of fiscal 2026. It also expects improving capital spending, resilient pricing and easing tariff pressures to drive margin expansion into 2027, despite continued softness in Europe and China's chemicals market. Related articles JPMorgan upgrades 3M, Emerson Electric to Overweight ahead of earnings Nvidia's new Alpamayo project: What it means for Tesla? This sector is 'poised for a big, beautiful year': Truist

JPMorgan JPM and Morgan Stanley MS crushed expectations and delivered blockbuster second-quarter results, supported by resilient trading activity, improving investment banking (IB) revenues and solid wealth management performance. However, differences in business mix, valuation, earnings momentum and capital-return prospects could determine which banking giant offers stronger upside potential for investors following their impressive quarterly performances.Against this backdrop, let us examine the growth prospects of JPM and MS and determine which stock appears to be the better investment at present. JPMorgan posted the highest quarterly profit ever recorded by a U.S. bank, reporting record net income of $21.2 billion or $7.70 per share for the second quarter. This was fueled by a huge boom in IB deals and heavy stock trading, and also included certain significant one-time items.Supported by a healthy deal pipeline and resilient M&A demand, IB momentum is expected to remain favorable. Additionally, JPM raised its 2026 net interest income (NII) outlook to approximately $105.5 billion from $103 billion, reflecting a favorable balance sheet mix, loan growth and higher revolving card balances.Its expanding branch and digital network should strengthen primary banking relationships, cross-selling opportunities and long-term deposit share gains. Continued investments in AI, technology, branches and front-office talent are expected to improve efficiency, service quality and risk controls. JPMorgan also retains flexibility for selective acquisitions and partnerships in areas such as asset management, data and technology, while prioritizing organic growth and capital returns.However, expenses are likely to stay elevated as the company invests in technology, marketing and growth initiatives. The bank raised its non-interest income outlook for 2026 to $107.5 billion from $106 billion. JPM’s mortgage business remains exposed to rate-sensitive customer behavior and housing activity and is a less dependable growth contributor compared with cards, payments and wealth management. Also, credit quality remains a watch item amid a tougher, more uncertain macro environment. Like JPM, Morgan Stanley posted solid second-quarter results, driven by robust client engagement and strength in IB and trading activities. Wealth management also performed well, driven by record asset managem...

Note: The following is an excerpt from this week’s Earnings Trends report. You can access the full report that contains detailed historical actual and estimates for the current and following periods, please click here>>> Here are the key points: The big banks have kicked off the Q2 earnings season with remarkable momentum. Both earnings and revenue growth rates—along with the percentage of companies beating expectations—are tracking significantly higher than in recent quarters. While we are still in the opening stages of the Q2 reporting cycle, these early results strongly reinforce the robust corporate earnings trend we've been seeing. For the 34 S&P 500 companies that have reported Q2 results already, total earnings are up +55.3% from the same period last year on +18.8% higher revenues, with 91.2% beating EPS estimates and 82.4% beating revenue estimates. The Q2 earnings and revenue growth rates have been boosted by Micron’s (MU) very strong quarterly results, but the earnings and revenue growth rates would still compare favorably with other recent periods when we exclude Micron from these results. Excluding Micron, Q2 earnings for the remaining 33 index members that have reported Q2 results would be up +21.5% (vs. +55.3% otherwise) on +12.5% higher revenues (vs. +18.8% otherwise). For the Finance sector, we now have Q2 results from 36.6% of the sector’s market capitalization in the S&P 500 index. Total earnings for these Finance companies are up +30.2% from the same period last year on +20.4% higher revenues, with all the companies beating EPS estimates and 90.9% beating revenue estimates. This is a notably better performance from these Finance companies relative to what we have seen from the group in other recent periods. The big banks and brokers kicked off the Q2 reporting cycle in style, comfortably beating consensus EPS and revenue estimates and providing reassuring reads on underlying trends in their businesses. JPMorgan’s JPM Q2 earnings increased +21.7% from the same period last year on +27.7% higher revenues, while those for Bank of America BAC, Citigroup C, and Wells Fargo WFC increased +27.5%, +45.1%, and +18.4%, respectively. Bank stocks in general and these four stocks in particular have enjoyed a decent but otherwise unspectacular run this year, as some of the earlier geopolitical risk factors have eased lately. Banks are cyclical businesses...

Chicago, IL – July 16, 2026– Zacks Director of Research Sheraz Mian says, "Excluding Micron, Q2 earnings for the remaining 33 index members that have reported Q2 results would be up +21.5% (vs. +55.3% otherwise) on +12.5% higher revenues (vs. +18.8% otherwise)." Note: The following is an excerpt from this week'sEarnings Trends report. You can access the full report that contains detailed historical actual and estimates for the current and following periods, please click here>>> Here are the key points: The big banks have kicked off the Q2 earnings season with remarkable momentum. Both earnings and revenue growth rates—along with the percentage of companies beating expectations—are tracking significantly higher than in recent quarters. While we are still in the opening stages of the Q2 reporting cycle, these early results strongly reinforce the robust corporate earnings trend we've been seeing. For the 34 S&P 500 companies that have reported Q2 results already, total earnings are up +55.3% from the same period last year on +18.8% higher revenues, with 91.2% beating EPS estimates and 82.4% beating revenue estimates. The Q2 earnings and revenue growth rates have been boosted by Micron's MU very strong quarterly results, but the earnings and revenue growth rates would still compare favorably with other recent periods when we exclude Micron from these results. Excluding Micron, Q2 earnings for the remaining 33 index members that have reported Q2 results would be up +21.5% (vs. +55.3% otherwise) on +12.5% higher revenues (vs. +18.8% otherwise). For the Finance sector, we now have Q2 results from 36.6% of the sector's market capitalization in the S&P 500 index. Total earnings for these Finance companies are up +30.2% from the same period last year on +20.4% higher revenues, with all the companies beating EPS estimates and 90.9% beating revenue estimates. This is a notably better performance from these Finance companies relative to what we have seen from the group in other recent periods. The big banks and brokers kicked off the Q2 reporting cycle in style, comfortably beating consensus EPS and revenue estimates and providing reassuring reads on underlying trends in their businesses.JPMorgan's JPM Q2 earnings increased +21.7% from the same period last year on +27.7% higher revenues, while those for Bank of America BAC, Citigroup C and Wells Fargo WFC increased +27.5...

Concerned about an AI bubble? Sign up for The Daily Upside for smart and actionable market news, built for investors. It’s getting better all the time. Wall Street is celebrating a second quarter that delivered stellar earnings for banks, wirehouses and asset managers alike. With major indexes up roughly 10% so far this year, a rising tide is lifting fee revenue even as high-net-worth clients generating more wealth are increasingly looking for sophisticated advice. Things are going so well, in fact, that JPMorgan Chase CEO Jamie Dimon used his firm’s earnings call this week to make a colorful boast about his wealth unit’s leadership. “It’s a great team of people, which I am fully confident if I was hit by a truck, which is not my preference, we would be fine,” he said. Sign up for The Daily Upside at no cost for premium analysis on all your favorite stocks. READ ALSO: RIAs Excel in Client Retention but Need a Strategy for Boosting Referral Business and Prenups Are on the Rise: Here’s How to Talk About Them With Clients Dimon’s confidence is backed by hard data, a trend mirrored across the wealth management landscape. At JPMorgan alone, profit in the asset and wealth management unit surged 33% year over year to about $2 billion, pushing client assets up 19% to $7.7 trillion. Similarly, Citigroup’s wealth division marked its ninth consecutive quarter of revenue growth, with profits leaping 51% year over year to top $580 million. Almost two-thirds of the unit’s new asset growth came from deepening relationships with existing clients. That massive asset influx was a recurring theme among the wirehouses (UBS reports later this month): Morgan Stanley’s wealth and investment management businesses crossed a historic milestone, reaching $10 trillion in total client assets after pulling in a record $148 billion in net new assets this quarter, according to the firm’s earnings report on Wednesday. While just over half of those inflows stemmed from client IPOs in the firm’s workplace channel, meaning they weren’t entirely driven by traditional advised clients, the sheer scale remains impressive. Meanwhile, Bank of America’s global wealth unit, which includes both BofA Private Bank and Merrill Lynch, saw profits skyrocket a whopping 42% to $1.4 billion, fueled by $4.4 billion in management fees. Wells Fargo rode the same wave, reporting a 28% jump in wealth division profi...

The banking giant just showed off its profit engine, but now it has to prove this new power is permanent. Forget the headline beat. Yes, Bank of America (BAC)’s second-quarter numbers were solid, with earnings per share jumping 34% to $1.21 and the bank generating a stellar 17% return on tangible common equity. The market gave a polite nod, sending the stock up a respectable 1.9% on a flat day for the broader market. But the real news wasn’t in the results just posted; it was in the new bar management set for the rest of the year. This quarter was a powerful demonstration of the bank’s earnings machine, forcing a major upgrade to its own profitability targets. For an investor, this reframes the entire story. With its performance proven, the question for Bank of America shifts to whether this new, higher altitude of profitability is the new normal or just a temporary peak. This wasn't a one-off win in a single division. The performance was impressively broad. As management noted, “Every business segment generated operating leverage.” The capital markets businesses were on fire, with investment banking fees soaring 50% year-over-year to more than $2.1 billion. The sales and trading division was not far behind, pulling in $7.2 billion in revenue, a 33% increase from last year. From the main street Consumer Banking division to the towers of Wall Street, the entire franchise was humming. Here’s the number that really matters. At the start of the year, the company was guiding for full-year operating leverage of “more than 200 basis points.” After a blistering first half where that figure “exceeded 450 basis points,” management just lifted its full-year target to a range of “300-400 basis points.” That’s a large upgrade. It signals that the company’s ability to grow revenue faster than costs has become a core feature of the business model, rather than a temporary trend. This is the heart of the bull case: the scale and efficiency you’ve been paying for are finally delivering in a big way. Of course, there’s a catch. Analysts on the earnings call repeatedly poked at one key issue: the second half of the year faces much more difficult comparisons. Management was candid about it. As one executive explained, “most all of the NII build last year was in the second half of the year. We're just up against tougher comps, that's all.” This is the risk you have to weigh. The...

Morgan Stanley's (MS) second-quarter revenue surpassed Wall Street's projections, with robust invest

JPMorgan Chase JPM) once again reminded Wall Street why it remains the gold standard among U.S. banks after delivering a stellar Q2 report that impressively topped analyst expectations yesterday. Driven by surging trading revenue, a rebound in investment banking, resilient consumer spending, and healthy loan growth, the banking giant posted another record quarter while raising key guidance metrics. With JPM hitting an all-time high of $351 a share following its earnings release, investors may be wondering whether the post-earnings rally has further room to run or if much of the good news is already priced in. Image Source: Zacks Investment Research JPMorgan's Record Q2 Results JPMorgan's second-quarter numbers easily exceeded Wall Street estimates across the board. The company earned record quarterly adjusted net income of $16.9 billion or $6.14 per share, which was up nearly 24% year over year, and almost 10% above EPS expectations of $5.59. This came on revenue of $57.34 billion, which was also a quarterly peak and reflected 27% growth from the prior year quarter while topping estimates of $49.14 billion by nearly 17%. Image Source: Zacks Investment Research The strength was broad-based: Investment banking fees rebounded sharply as capital markets activity improved. Equities trading revenue surged thanks to elevated market volatility and client activity. Asset and wealth management generated record fees. Consumer banking remained resilient with continued loan and deposit growth. Credit quality remained healthy, prompting management to lower its expected net charge-off outlook. CEO Jamie Dimon credited strong client activity and resilient consumer spending for the impressive quarter while noting that the bank continues to benefit from AI-related financing activity across corporate America. However, Dimon reiterated that geopolitical tensions, elevated government deficits, and inflation remain long-term risks. Perhaps even more encouraging than the quarterly beat was management's updated outlook. JPMorgan raised its full-year net interest income (NII) guidance to roughly $105.5 billion from $103 billion, reflecting stronger lending trends and continued business momentum. The banking giant modestly increased its annual expense outlook to $107.5 billion as it continues to invest heavily in technology and artificial intelligence, but investors largely viewed th...

Chip-gear giant ASML rose with the Nasdaq and AI stocks at key levels. Oil prices topped $80 a barrel on new U.S. attacks vs. Iran.

Wall Street cleared this earnings season’s first major hurdle with room to spare, as the nation’s biggest banks pummeled profit forecasts. “Bank earnings are often described as a scoreboard for the financial sector,” said Ruben Dalfovo, investment strategist at Saxo Bank. “They are more useful as an economic medical examination, and the early numbers suggest the patient remains active, and dealmaking appears healthier.”

(Updates to specify revenue beat in the headline.) Morgan Stanley's (MS) second-quarter revenue s

When you buy through links on our articles, Future and its syndication partners may earn a commission. President Donald Trump rolled back his 20% toll on Strait of Hormuz shipping, though an off-and-on ceasefire in the Middle East continues to roil energy markets and interest rates. But consumer inflation was a lot cooler than expected in June, big banks beat Wall Street forecasts and even conflicting headlines suggest interest in the AI trade remains high. The West Texas Intermediate crude oil futures contract traded above $80 per barrel for the first time since June 17 and was higher by 2.0% at $79.68 on Tuesday. The 2-year Treasury yield ticked down to 4.189% after reaching a new 52-week high and closing at 4.263% on Monday. The Bureau of Labor Statistics (BLS) said before the opening bell that the Consumer Price Index (CPI) showed its biggest month-over-month decline since 2020 last month. The June CPI report attributed the move to the steepest slide for gasoline prices since 2022. Bloomberg, relying on "people familiar with the matter," said South Korea-based Samsung Electronics plans to seek some of the same fortune SK Hynix (SKHY, -9.3%) found last Friday when it completed one of the biggest IPOs in U.S. history. But Reuters quoted a company spokesperson: "Samsung Electronics is not reviewing ​the possibility of issuing American Depositary ​Receipts." Samsung was up 3.4% on its local exchange, and the Korea Composite Stock Price Index was up 0.7% on Tuesday. Looking for more timely stock market news to help gauge the health of your portfolio? Sign up for Closing Bell, our free newsletter that's delivered straight to your inbox at the close of each trading day. Meanwhile, facing an array of challenges to his authority, new Fed Chair Kevin Warsh is testifying to Congress for the first time since taking his oath of office in May. Warsh appeared before the House Financial Services Committee today and will testify to the Senate Banking Committee tomorrow about inflation and interest rates. As Louis Navellier of Navellier & Associates notes, the BLS will release the Producer Price Index (PPI) before the opening bell on Wednesday. "Economists are expecting the overall PPI to decline 0.2% in June," Navellier writes, "so it is widely expected that inflation will also be cooling on the wholesale level." At the closing bell on Tuesday, the tech-heavy Nasdaq Comp...