We just heard from some of the largest financial institutions in the world, like JPMorgan Chase & Co. $JPM, BlackRock $BLK, and Wells Fargo & Co. $WFC.
3 out of 5 reported double beats, and 2 reported mixed results.
The market rewarded 4 out of 5 for their reports, but 3 out of 5 had negative reaction scores.
Jamie Dimon, one of the most powerful and influential financiers in the world, said the following about the current macro environment:
"The economy is facing considerable turbulence, with the potential positives of tax reform and deregulation and the potential negatives of tariffs and 'trade wars,' ongoing sticky inflation, high fiscal deficits, and still rather high asset prices and volatility."
In other words, he's not bullish...
Let's talk about what else happened with these reports.
Here are the latest earnings reports from the S&P 500 👇
*Click the image to enlarge it
Fastenal $FAST had the best earnings reaction and reported mixed results with a reaction score of 2.73. The market loved it...
The company reported revenues of $1.96B, versus the $1.95B estimate, and earnings per share of $0.52, which is what Wall Street expected.
Wells Fargo & Co. $WFC had the worst earnings reaction and reported mixed results with a reaction score of -2.10.
The company reported revenues of $20.15B, versus the $20.72B estimate, and earnings per share of $1.39, versus the $1.23 estimate.
Now let's dive into the data and talk about what happened with these reports 👇
FAST had its 4th consecutive positive earnings reaction:
Fastenal rallied 6.4% after this earnings report, and here's why:
High-value customer relationships (defined by $50K+/month) grew 6.9% Y/Y
Increased the quarterly dividend to $0.44 (they'll return $1B to shareholders in 2025 via dividends)
They continue to fire on all cylinders...
The stock is at the breakout level of a multi-year base-on-base pattern. It looks poised to climb higher...
If FAST is above 79, the path of least resistance is higher.
WFC is back at a key level of interest:
Wells Fargo & Co. was the only bank to have a negative earnings reaction on Friday, and here's why:
Net interest income fell 6% year-over-year
Net interest margin contracted to 2.67%, down from 2.81% last year
Auto lending dropped dramatically by 21%
The management team issued a cautious outlook, adding fuel to the fire.
As you can see on the chart, the stock recently broke out to new all-time highs. However, the sellers quickly stepped in and threw the price back to a key level of interest.
Will the former resistance become support? We'll see...
If WFC is above 59, the path of least resistance is higher.
