JP Morgan Earnings report
This week starts off the Earnings reports season. These are reports of virtually every major publicly traded company released once a quarter and showing their earnings. Quarters are reviewed against corresponding quarters of previous years. This is because there are seasonal considerations affecting results. For example, numbers seen in Q4 might be expected to be higher in certain companies due to events like Christmas than they would be in summer months. The Earnings reports are a major market factor. The effect on the market largely comes from the correlation between predictions and final results.
The first report scheduled to be released will be from JP Morgan on Jan 14th, 2016. This promises to be an especially interesting release due to recent legal problems they have been experiencing. In 2008 the company was accused of mishandling foreclosure processes. A settlement was reached in 2013 for JP Morgan and other accused US servicers, however the OCC found not all conditions were met by JP Morgan, leading to a final fine of $48 million.
Granted, it is not unusual for major corporations to experience litigation, no big hoorah there. However, when it comes to the market, what we will be waiting to see is the monetary effects of these legal issues on the quarter's earnings and whether it will knock predictions and results out of sync. As for now, the consensus seems to be an expectation that earnings will prevail over litigation losses
-- A symmetrical triangle in this month's chart encouraging for a bullish trend