US equity futures are 1% lower today in part because of disappointing bank earnings.
JPMorgan added $2.3 billion to provision for credit losses in an increase from $1.6 billion in Q3 and sees a “mild recession” in its “central case.”
CEO Jamie Dimon said: “The US economy currently remains strong with consumers still spending excess cash and businesses healthy. However, we still do not know the ultimate effect of the headwinds coming from geopolitical tensions including the war in Ukraine, the vulnerable state of energy and food supplies, persistent inflation that is eroding purchasing power and has pushed interest rates higher, and the unprecedented quantitative tightening. We remain vigilant and are prepared for whatever happens, so we can serve our customers, clients and communities around the world across a broad range of economic environments.”
So that’s basically saying he doesn’t know what’s coming. I expect we will hear more from him in the hours ahead.
As for the company itself, the CFO said they’re still hiring.
