Before the market opens on Tuesday, J.P. Morgan Chase & Co. (JPM) is expected to report first quarter earnings results. According to analysts at Thomson Reuters, J.P. Morgan is expected to report revenue of $24.41 billion. This will be up from revenue in the year-ago quarter which was at $23.86 billion. Also, J.P. Morgan is expected to report earnings of $1.39 a share compared with $1.28 for the same period a year ago. During the release, investors will be watching out for any new information from the bank regarding the investigation over their alleged rigging in the forex markets. To date, JPM has cooperated in the investigation and has also previously settled investors and regulators on this matter. Also, in the last quarter, JPM’s earnings were hurt as a result of higher credit provisions for loans. A year earlier, the credit-loss provision was at $104 million and a year later, it totaled $840 million. As their lending strengthens, banks tend to log higher provisions for loans that could turn sour. This can mitigate the positive impact of lending growth to a bank’s earnings. J.P. Morgan is currently trading at $62.07 a share.
Monday saw U.S. stocks trading lower. This came as a result of investor concerns regarding the timing of interest rate hikes as well as concerns regarding the potentially weak first quarter results. This investor concern was evident on the CBOE Volatility Index (VIX, +10.81%) which rose 11 percent to settle at almost 14. The main benchmark indices turned opening gains into losses and the Dow Jones Industrial Average (DJIA) declined 0.5%, or 80.61 points, to 17,977.04. Also, the S&P 500 index (SPX) closer down 0.5%, or 9.62 points, at 2,092.44. Meanwhile, the Nasdaq Composite index (COMP) dropped 0.2%, or 7.7 points, to 4,988.25. The tech heavy index failed to stay above the 5,000 level and the top performer on the index was Netflix Inc. (NASDAQ:NFLX). This top performance came after the online streaming media provider suggested that it could increase its share authorization by up to thirty times the current level. This move would represent Netflix’s 1st step to a potential stock split. As a result, the shares of Netflix traded at 474.68, up 4.42 percent or 20.11.
In thin trading on Monday, the U.S. dollar (USD) traded lower but remained supported on expectations that a rate hike by the Federal Reserve is imminent. The EUR/USD traded at 1.0577, down 0.24 percent. Sentiment on the currency is currently very vulnerable as a result of the uncertainty regarding Greece’s bailout. Meanwhile, the British pound advanced 0.11 percent and the GBP/USD traded at 1.4649. The GBP has remained under pressure after data released last Friday showed that industrial production in the U.K. increased 0.1% yet missed expectations for a gain of 0.4 percent. Elsewhere, the greenback held steady against the yen with USD/JPY at 102.20 while USD/CHF traded at 0.9779, down 0.12 percent. Also, the U.S. dollar index was at 99.74, up 0.11 percent.
On Tuesday, in Asian trading, crude oil prices gained. This comes ahead of U.S. crude industry data as well as stockpiles of refined product data which is due out today and again tomorrow. On Tuesday, the American Petroleum Institute will release data from last week's estimated levels for gasoline, crude and distillates and then on Wednesday, the Department of Energy will release their data on crude oil supplies. Meanwhile, WTI crude oil for delivery in May traded at $51.94 a barrel, up 0.06 percent, on the NYMEX. Also, on Monday, Brent crude for June delivery traded at $59.12 a barrel, up 0.28 percent.