25 Q1 Earnings Season: Big Banks Beat! A Sign of Earnings Resilience?
The first wave of Q1 2025 earnings reports is in, and several major financial players kicked things off with better-than-expected results. JPMorgan Chase, Wells Fargo, Morgan Stanley, and BlackRock all posted results before the bell on Friday, each delivering earnings per share (EPS) that surpassed Wall Street estimates — a promising start to earnings season and a potential signal of underlying resilience in the U.S. economy.
Here’s a quick look at the numbers and market reaction:
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JPMorgan Chase (JPM) closed at $236.20, up 4% on the day. Its 52-week range spans from $179.20 to $280.25 — a considerable climb that reflects both strength and risk.
JPMorgan Chase (JPM)
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Morgan Stanley (MS) edged up 1.44% to close at $108.12, with a 52-week range of $85.12 to $142.03. While the increase was not as much as JPM, it still delivered a solid beat.
Morgan Stanley (MS)
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Wells Fargo (WFC) was the outlier, slipping 0.95% to $62.51 despite the beat, perhaps a reflection of its more cautious outlook. CEO Charlie Scharf warned of a potential economic slowdown in 2025, citing a landscape of "continued volatility and uncertainty."
Wells Fargo (WFC)
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BlackRock (BLK), the asset management giant, saw a 2.33% boost to $878.78. With a 52-week range of $745.55 to $1084.22, it remains a heavyweight with exposure to broader market sentiment.
BlackRock (BLK)
Despite these earnings surprises and generally positive market reactions, I’m staying on the sidelines. Prices across the board are still quite elevated when viewed through a multi-year lens. With interest rates remaining high for an extended period and the threat of tariffs clouding the macro picture, I remain cautious — especially given the possibility of a recession brewing beneath the surface.
That said, this strong start does make me a bit more optimistic about what's to come. If these four institutions — spanning commercial banking, investment banking, and asset management — can deliver above expectations in this environment, perhaps other financials set to report next week could also bring some upside surprises. I still won’t be buying just yet, but I’ll be watching more closely.
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