JP Morgan And Morgan Stanley Kick Off Earnings Season; Netflix's Earnings In Focus
NAGA | Jul 15, 2022 04:38AM ET
The investors are getting ready for earning reports which will soon start coming in thick and fast. JP Morgan (NYSE:JPM) and Morgan Stanley’s (NYSE:MS) financial statements were released last night, including comments from the company’s hierarchy.
The S&P 500 declined by 0.30% during yesterday’s trading session, followed by a further decline of 0.25% during today’s pre-market futures. During yesterday’s trading session, it saw a significant decline before gaining momentum and closing the session only slightly under the opening price.
The S&P 500 is strongly influenced by the high inflation rate and monetary policy. However, traders are now turning their attention toward earning reports. Over the next two weeks large companies such as Netflix (NASDAQ:NFLX) and Tesla (NASDAQ:TSLA) are scheduled to release their earning reports.
Morgan Stanley confirmed a net profit of $13.1 Billion and earnings per share of $1.39. Both figures disappointed investors as the company’s net profits were much lower than the year before. In addition, the earnings per share turned out to be much lower than the predicted $1.55 and the $2.06 in the year's first quarter.
JP Morgan also slightly underachieved. The company confirmed an earning per share of $2.76 compared to the $2.88 expected by the market. However, the EPS was slightly higher than the previous year. It should be noted that the stock was pressured by reports that the company has seen a strong increase in “bad loans.” Non-performing loans now mount $428 Million. JP Morgan’s CEO Jamie Dimon warns geopolitical tensions, high inflation, and waning consumer confidence could hurt the economy “sometime down the road.”
Netflix is another stock that has been under continuous pressure since the previous earnings report. The company is due to confirm its earnings next week and is trying to amend existing agreements with leading entertainment studios to host ad-supported content. The company plans to launch the service by the fourth quarter of this year, but the move has not been met with positive consumer response. It is reported that Netflix is in talks with Warner Bros (NASDAQ:WBD), Universal, and Sony (NYSE:SONY) Pictures. According to preliminary estimates, the studios may expect a premium of 15–30% of existing contracts.
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The company's financial report will be published on Jul. 19. The revenue for the past quarter is predicted to be $8.04 Billion, surpassing $7.87 a quarter ago. Earnings per share may reach $2.98, slightly lower than $3.53 in the previous period.
Over the next week, analysts will continue to monitor investor confidence and risk appetite, which can significantly impact the stock market's performance. Investor confidence and risk appetite will also be connected with the level of inflation and monetary policy .
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