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U.S. Morning Call: JPMorgan's Dimon swims ahead of the Whale

Friday, July 12, 2013 - 03:58

July 12 - JPMorgan Chase reported a 31 percent rise in quarterly profit as trading revenue rebounded and avoided another ''London Whale'' derivatives loss.

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We begin today's boarding call with results from JPMorgan out minutes ago. Looks like the London well trading debacle is long behind them and CEO and chairman Jamie Dimon can smile again. The bank recorded a 31%. Rise in quarterly profit it -- on both earnings and revenue. Mortgage originations were up compared to last year. But on the side income from mortgage banking was down for the quarter. Dimon said they seen improving American economy remain cautious in the bank's outlook and didn't warn that loan growth continues to be -- across the sector. That's important given the rising interest rates. The bank is also increasing its dividend to 38 cents a share from thirty cents. JPMorgan shares start the year at 44 dollars and they're up 25%. Since. And reporting results in just a little bit Wells Fargo the bank is seen twelfth consecutive quarters of earnings growth. Port can be tricky ones. The recent market volatility and rising interest rates spell trouble for America's biggest lender. Mortgage origination volume has declined two quarters in -- -- for the bank. And refinancing wave which essentially drove profits for the last couple of years has also died down. Shares of Wells Fargo tracking up slightly before the open itself up nearly 24%. Year to date. So my second quarter earnings trickle an analyst polled by Reuters say don't get too excited. -- -- 500 companies are expected to grow just two point 6% for the period. Quarter earnings on the other hand could grow by eight point 4%. And a quarter could be even better with twelve point 8% growth. Investors are banking on those numbers to get them past what may be rocky few weeks. Not to markets US stock futures are agreeing this morning after the Dow and S&P closed at record highs on Thursday. Stock funds on its parent with investors in the US pouring in nearly twelve billion dollars in the latest week ending July 10. That's the most since late January. Bond funds that reported one point two billion dollars of net outflows. Up from 870 million dollars in the prior week. We've also got a couple of economic numbers out today including the Producer Price Index for June which is expected to remain steady at point 5%. We're inching ever closer to the July 18 vote on Dell's -- Agitator Carl Icahn still scrambling to persuade shareholders to vote down as CEO Michael Dell's buy out deal. By raising his competing offer. Icons got to at least three shareholders on his side who together hold about 3% of shares. But the odds may favor Michael Dell and partners -- after advisory firm I yes that's recommended that shareholders take SE deal. If Michael Dell does an icon gets a profit of ten point seven million dollars for his troubles. If I thought wins he'll have a trouble PC maker on his hands to turn around. But it may have been the billionaire investor could potentially lose hundreds of millions of dollars. Shares at least at this week ahead of Thursday's decision. And now our Sun Valley moment of the week check Google chairman Eric Schmidt here see him on the phone man. There is again on his and so -- are calling. -- -- Schmidt said the relationship between apple and Google has improved recently and that they've been conducting lots and lots of meetings. That's a fair Friday morning call remembered follow -- on Twitter at Reuters Insider and get more great ideas at Reuters dot com slash -- I -- it's very hard.

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U.S. Morning Call: JPMorgan's Dimon swims ahead of the Whale

Friday, July 12, 2013 - 03:58