JPMorgan Chase & Co (NYSE:JPM) reported earnings Friday morning, beating EPS estimates and trading higher before giving up those gains later in the session.
But according to the firm’s CFO, Jeremy Barnum, consumer resiliency is high.
What Happened: “The consumer is fine,” Barnum said during the bank’s fourth-quarter (Q4) earnings call.
Some economists have worried that high interest rates will cause a downturn in spending and economic growth. But the data shows otherwise.
“All of the relevant metrics are now effectively normalized,” he added.
Barnum does point out, however, that consumers have been spending more money than they’re bringing in, creating potential problems down the road. But Barnum also said that he expects the labor market to remain strong, which would keep consumer credit elevated.
JPMorgan Chase CEO Jamie Dimon had slightly less dovish comments on the overall economy, insisting consumers may run into stickier inflation and higher interest rates for longer than what the Federal Reserve is currently projecting.
The Price Action: JPMorgan Chase’s stock opened about 2.5% higher than its close on Thursday. But, amid overall weakness in the financial sector, the stock gave back those gains and traded slightly in the red Friday afternoon.
Other banking companies, like Bank of America (NYSE:BAC), Citigroup (NYSE:C) and Wells Fargo (NYSE:WFC) also reported earnings Friday morning. As of Friday afternoon, Citigroup was the only one to be trading in the green.