JP Morgan was reported to have revised down its US economic growth forecast for the first quarter to 2.5% from 3%, as “ugly” retail sales report in January weighed on “scorching” consumer inflation data.
JP Morgan Chase shares closed higher for a fourth consecutive trading session on Wednesday. It has also been the sharpest daily surge since February 6th. The stock went up 2.31% ($2.60) to $115.03, after touching an intraday high at $115.24, or a price level not seen since February 2nd ($116.92).
In the week ended on February 11th the shares of the banking group lost 3.71% of their market value compared to a week ago, which marked a second consecutive period of decrease.
Due to the recent streak of gains, the stock has pared its loss to 0.55% so far during the current month, following an 8.16% surge in January. The latter has been a fifth consecutive month of gains.
For the entire past year, the shares of the NYSE-listed financial holding company rose 23.93% following another 30.68% surge in 2016.
According to a report by the US Bureau of Labor Statistics, consumer prices rose 2.1% in January compared to the same period a year earlier, while matching the rate of increase in December and also outstripping the median analyst estimate (1.9% annual growth). Higher cost of food and medical care services offset a slowdown in prices of gasoline and electricity in January.
In monthly terms, consumer prices went up 0.5% in January after a 0.2% increase in December.
On the other hand, monthly US retail sales unexpectedly shrank 0.3% in January, after remaining flat in December. It has been the largest drop in sales since February 2017. In comparison, analysts on average had expected a 0.2% sales growth.
“Today’s inflation reading should probably cement in place the Fed’s intent to hike rates at the March FOMC meeting”, JP Morgans Michael Feroli stated in a research note, cited by Reuters.
“We now also think the odds are moving up that they also revise their guidance at that meeting from looking for three hikes this year to four, aligning with our view”, he also said.
According to CNN Money, the 28 analysts, offering 12-month forecasts regarding JP Morgan Chase & Co’s stock price, have a median target of $120.00, with a high estimate of $135.00 and a low estimate of $65.00. The median estimate is a 4.32% surge compared to the closing price of $115.03 on February 14th.
The same media also reported that 14 out of 31 surveyed investment analysts had rated JP Morgan Chase & Co’s stock as “Hold”, while 11 – as “Buy”. On the other hand, 2 analysts had recommended selling the stock.
Daily and Weekly Pivot Levels
With the help of the Camarilla calculation method, todays levels of importance for the JP Morgan Chase stock are presented as follows:
R1 – $115.28
R2 – $115.53
R3 (Range Resistance – Sell) – $115.78
R4 (Long Breakout) – $116.53
R5 (Breakout Target 1) – $117.40
R6 (Breakout Target 2) – $117.81
S1 – $114.78
S2 – $114.53
S3 (Range Support – Buy) – $114.28
S4 (Short Breakout) – $113.53
S5 (Breakout Target 1) – $112.66
S6 (Breakout Target 2) – $112.25
By using the traditional method of calculation, the weekly levels of importance for JP Morgan Chase & Co (JPM) are presented as follows:
Central Pivot Point – $109.54
R1 – $115.09
R2 – $120.15
R3 – $125.70
R4 – $131.26
S1 – $104.48
S2 – $98.93
S3 – $93.87
S4 – $88.82
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