JPMorgan’s shares dive despite Q4 earnings beat

Wednesday, January 14, 2026

Today’s headlines

What’s happening: Shares of JPMorgan Chase fell on Tuesday after the company reported its fourth-quarter results.

What happened: The biggest US bank posted better-than-expected revenues and earnings for the latest quarter.

A surprise decline in JP Morgan’s investment banking fees exerted pressure on the stock.

How were the results: The bank posted a 7% year-over-year decline in net income for the fourth quarter.

Managed net revenues came in at $46.8 billion, beating consensus estimates of $46.02 billion.
Adjusted earnings were $5.23 per share, topping Wall Street expectations of $4.92 per share.

Why it matters: JPMorgan kicked off the latest round of earnings releases by US banks. Its biggest rivals – Citigroup, Bank of America, Goldman Sachs, Wells Fargo and Morgan Stanley – are scheduled to report over the course of this week.

Markets expect banks to collectively deliver their second-highest annual profits on record, driven by policy changes by US President Donald Trump.

JPMorgan generated $2.35 billion from its investment banking business during the latest quarter, down 5% year-over-year. This was much lower than the company’s own guidance in December of a low single-digit percentage gain. The investment banking results were impacted by an unexpected 2% decline in debt-underwriting fees, compared to expectations of 19% growth.

Net interest income (NII), excluding Markets, rose 4% year-over-year to $23.9 billion, following increased deposit balances and higher revolving balances in Card Services. Non-interest revenue, excluding Markets, surged 7% year-over-year to $14.7 billion. Revenues from Markets rose 17% to $8.2 billion in the fourth quarter.

“This year (2025), we opened 1.7 million net new checking accounts and 10.4 million new credit card accounts, and we also grew wealth management households to over 3 million. Looking ahead, we are excited to become the new issuer of the Apple Card,” CEO Jamie Dimon said.

JPMorgan guided to fiscal 2026 net interest income of around $103 billion.

How shares responded: JPMorgan’s shares fell 4.2% to close at $310.90 on Tuesday. The stock has added more than 27% over the past year.

What to watch: Investors will keep an eye on policy change announcements by the Trump administration and interest rate reductions by the Federal Reserve.

The markets today

The Australian dollar in focus today ahead of consumer inflation expectations data

Context: The AUD/USD forex pair rose this morning as investors continued monitoring the monetary policy outlook.

Details: Investors lowered their speculations of an interest rate hike by the Reserve Bank of Australia in February. However, markets widely expect a hike by May.

A slight decline in inflation for November and lower consumer confidence this month resulted in uncertainty around the February rate move. Job vacancies fell 0.2% during the November quarter, which pointed to stable labour demand. Meanwhile, strong household spending in November is expected to keep inflation level elevated, which raised prospects of a tighter policy.

Data released this morning showed Australia’s private house approvals rose 1.3% to 9,458 units in November, following a 1.3% decline in October.

Strength in the US dollar weighed on the AUD/USD forex pair this morning. The US dollar index, which measures the greenback’s performance versus a basket of major peers, rose around 0.1% to 99.21.

The AUD/USD pair gained around 0.1% to 0.6690 this morning, while the S&P/ASX 200 fell 0.15% to 8,794.90.

What to watch: Investors await the release of economic data on consumer inflation expectations (0400 UAE Time) from Australia on Thursday. Australia’s consumer inflation expectations, which rose to 4.7% in December from November’s three-month low of 4.5%, are likely to ease back to 4.5% in January.

Other Markets: US trading indices closed lower on Tuesday, with the Dow Jones index, S&P 500 and Nasdaq 100 down by 0.80%, 0.19% and 0.18%, respectively.

The news shaping the markets

Ukraine’s Security Service said the country’s naval forces had hit a Russian drone factory in Taganrog. The news sent the USD/RUB pair higher in forex trading this morning.

Japan’s Reuters Tankan index for manufacturers dipped to +7 in January from +10 in the previous month. Manufacturers’ mood falling to its weakest level in six months lent support to the USD/JPY forex pair.

South Korea’s unemployment rate rose to 4% in December, hitting its highest reading in almost five years, which sent the USD/KRW pair higher in forex trading this morning.

New Zealand’s building consents for new dwellings gained by 2.8% in November following a 0.7% decline in October, lending support to the NZD/USD forex pair.

Argentina’s consumer prices rose 2.8% in December compared to a 2.5% gain in November. However, the USD/ARS pair slipped in forex trading this morning.

What else to watch today

US MBA mortgage applications (1600 UAE Time), PPI (1730 UAE Time), retail sales (1730 UAE Time), existing home sales (1900 UAE Time), business inventories (1900 UAE Time) and EIA crude oil stocks change (1930 UAE Time), EIA gasoline stocks change (1930 UAE Time), as well as Canada’s 5-year Bond auction (2100 UAE Time).