JPMorgan Chase CEO and chairman Jamie Dimon gestures while speaking during the US Senate Bank, Housing and Urban Business Committee-Supervision of Wall Street Firms, on Capitol Hill in Washington, DC, DC
Evelyn Hockstein | Reuters
JPMorgan Chase CEO Jamie Dimon said on Friday that he expects estimates to fall for business income in the midst of the uncertainty created by the trade negotiations of President Donald Trump.
On a call with reporters to discuss the income from the first quarter, JPMorgan CFO Jeremy Barnum said he saw no reason to draw the bank’s guidance, which depends on how the economy and interest rates take place.
His boss, Dimon, then intervened and spoke about the wider business world: “I would just add companies, some have taken away their guidance. I expect to see more of that.”
“Analysts have generally reduced their S&P estimate by 5%,” Dimon said in the last few days. “I think you’ll see that even more.”
Later on Friday, Dimon specified that he expected that analysts would beat their S&P 500 win estimates for the growth of 5%, it would be flat and then only as much as negative 5% “probably the next month.”
Companies will report income in the coming weeks, giving managers the opportunity to inform investors of their prospects during a period of increased uncertainty. Markets have been affected since Trump announced a major set of rates for the American trading partners last week and have remained volatile because tensions in the US and China have escalated.
Companies with exposure to consumers, including all, including companies Walmart” Delta And Frontier Airlines have regulated in parts of their guidance for investors.
The uncertainty ensures that customers withdraw from acquiring companies and making investments while taking a wait -and -see attitude, said Dimon and Barnum.
Anecdotal examples suggest that “people are careful,” Dimon said. “You know, people withdraw from deals, not only large ones, but companies on the medium -sized market are very careful with investments.”
Barnum added that the environment led companies to drop long -term plans in favor of “in the short term optimization of supply chains.”
“This level of policy uncertainty is one that makes it difficult to plan the long term,” said Barnum.
In the meantime, consumers have held up in the first quarter, and more recently there are signs that they have accelerated purchases about ensuring that rates make items more expensive, the CFO said.