CNBC Stock Blog
- Investors Bet on a New Year's Rally For eBay
- Why You Should Play the Reflation Trade: Stock Picker
- S&P to Hit 1,200 by Year-End: Chief Investor
- 5 Big Bank Stocks Investors Should Consider: Strategists
- My 2010 Home Price Outlook: UBS Analyst
- Why Are Options Piling into Dollar Tree?
- Markets Can Rise 5-10% in the Near-Term: Strategist
- Buy These 'Competitively Positioned' Stocks: Portfolio Manager
- 5 Stocks That Benefit from Health Care Legislation: Analysts
- 9 Stocks That Play Rising Water Costs: Strategists
MOST SHARED
- The 'Real' Jobless Rate: 17.5% Of Workers Are Unemployed
- Wednesday's Economic News Crunch Could Tilt Markets
- Obama Reiterates Commitment to Boost US-India Ties
- NBA D-League On The Rise
- Australia Wheat Exporters Face Challenges: GrainCorp
- Japan Export Rebound Eases Fear of New Recession
- Starbucks Eyes China as Next Major Market
- Stifling Anger at Work Can Kill, Survey Finds
- The Social Media Gaming Threat
- Why You Should Play the Reflation Trade: Stock Picker
- Citi Mortgage Reveals What Treasury Won't
- S&P to Hit 1,200 by Year-End: Chief Investor
- Amended Berkshire Hathaway Filing Indicates No Secret Stock Stakes at End of Q3
- Facebook's Biggest-Ever Holiday Shopping Season
- Facebook's New Dual Class Structure - Slow Steps to an IPO
- 5 Big Bank Stocks Investors Should Consider: Strategists
- Gambling Drunk, Texting to Live And America's On Sale - Your Emails
- Nov. 24: Unusual Volume Leaders
- AIG Board OKs CEO Pay; Benmosche Agrees to Stay
- Half of Banks' Losses May Still Be Hidden: IMF Head
- Deere Reports Quarterly Net Loss, Revenue Falls
- Tiffany Profit Higher Than Expected; Raises Outlook
- Americans Ditch Planes for Trains this Thanksgiving
- Obama Reiterates Commitment to Boost US-India Ties
- FDIC's Bair Cautions on Risks in Bank Break-Up Plan
- Call Me Crazy: Confessions of a Black Friday Shopper
- Turkey Day 101: How Well Do You Know Your Bird?
RSS FEED
Text Size 
CNBC News Associate
JPMorgan Chase’s earnings result is "better than what we’ve expected but expect headwinds," said Jeffery Harte, managing director in equity research at Sandler O’Neill.
“You’ll see that credit improvements are not really what’s helping JPMorgan post numbers at this point,” Harte told CNBC. “It’s revenue strength and managing expenses.”
JPMorgan [JPM
Loading...
()
] said record investment banking fees helped drive a 36 percent rise in quarterly profit, topping Wall Street forecasts, but warned that credit quality in consumer mortgages and credit cards is deteriorating faster than it expected.
Earlier this week, Goldman Sachs [GS
Loading...
()
] reported a 33 percent rise in quarterly earnings as a strong gain in trading was offset by a one-time charge to repay government loans.
“Goldman Sachs is an investment bank—JPMorgan has a very good investment bank in it, but it’s got a very big consumer commercial lending operation,” he said. “JPMorgan is still going to have some credit headwinds to it that Goldman is not going to have.”
Harte recommended that investors consider Bank of America [BAC
Loading...
()
], saying they have “a very good franchise that is not being properly respected by the stock market and it’s pretty cheap.”
In the meantime, he said JPMorgan is “one of the best managed banks, but it carries more of a premium than a BofA.”
- Charts: Beware of Banking with the BofA Bear
- Dick Bove: Financials Rally Set to Continue
- All Big Banks Will Do 'Quite Well': Stock Pickers
Disclosure:
Harte has investment banking clients who own shares of JPMorgan.
______________________________
CNBC Slideshows:
______________________________
Data is a real-time snapshot *Data is delayed at least 15 minutes