WS #12036
Major US bank earnings dominate the signal window, with JPMorgan, Bank of America, and Wells Fargo all reporting beats on revenue and EPS, driven by investment banking and trading strength. JPMorgan's equities trading revenue of $6.03B massively beat estimates of $3.98B, while BAC's equities trading also beat. However, JPMorgan's FICC revenue missed slightly, and the stock initially moved lower before recovering. The bank results are bullish for the financial sector but are partially offset by geopolitical escalation: Trump's proposed 20% toll on Hormuz shipping, fresh US-Iran clashes, and a chemical tanker attack off Oman are keeping oil elevated above $80, which could pressure broader markets. The US-Iran conflict narrative is ESCALATING with new airstrikes and retaliatory threats. TSMC reported a 68% YoY revenue surge, bullish for semiconductors. Apple's record 20% Q2 market share is a positive signal for AAPL. Bitcoin is steady at $62,600 with South Korean rotation from stocks to crypto. The Fed rate hike narrative is gaining traction as Bloomberg flags rising chances.
Topics
Key developments
- JPMorgan Q2 EPS $6.14 beats $5.79 estimate, revenue $58B beats $50.2B, equities trading revenue $6.03B crushes $3.98B est.
- Bank of America Q2 EPS $1.21 beats $1.13 estimate, revenue $31.6B beats $30.7B, equities trading revenue $3.62B beats $2.69B est.
- Wells Fargo Q2 EPS $1.96 beats $1.72 estimate, revenue $22.62B beats $21.82B, provision for credit losses $914M well below $1.2B est.
- Trump proposes 20% toll on ships passing through Strait of Hormuz; US-Iran clashes escalate with airstrikes and tanker attack off Oman.
- TSMC June revenue surges 68% YoY, driven by AI chip demand; first-half revenue up 35.6%.
- Apple achieves record 20% Q2 smartphone market share with 3% growth despite industry slump.
- Bloomberg reports rate hike chances rising as inflation and geopolitical tensions persist.