JPMorgan Chase shares were under pressure Tuesday despite a strong quarter , and Wall Street analysts largely framed the pullback as profit-taking rather than a fundamental shift in the outlook. The bank stock fell nearly 3% on Tuesday after the bank posted fourth-quarter results that topped expectations on better-than-expected revenue from the bank’s trading operations. The company said net profit fell 7% to $13.03 billion, or $4.63 per share, because of a preannounced $2.2 billion reserve tied to its takeover of the Apple Card loan portfolio from Goldman Sachs . Investors could be digesting the in-line guidance and lingering regulatory risks that overshadowed an otherwise solid report, analysts said. Bank of America reiterated its buy rating on JPMorgan following the results, adding that it would use any near-term weakness to add to positions. The firm noted, however, that uncertainty around potential credit-card interest-rate caps could keep some investors cautious. “We would use any potential weakness due to short term profit-taking to buy the stock,” Bank of America said. “Unclear to us whether management comments can alleviate the concerns tied to the credit card interest rate cap risk which may cause investors to remain in wait and watch mode.” President Donald Trump declared recently that American credit card companies would be subject to a 10% cap on the interest rate they can charge customers. Many believe such a move would result in fewer credit card accounts for Americans and a dip in spending for the U.S. economy. At Piper Sandler, analysts said results were stronger once one-time items were excluded, estimating core earnings of $5.28 a share. They highlighted beats in net interest income, core credit costs and expenses, and pointed to management’s newly issued 2026 reported net interest income forecast as a likely catalyst for upward revisions across the Street. “Likely some upward pressure on market net interest income expectations – a good thing. Overall, a strong Q/outlook, and we expect the shares to respond well,” Piper Sandler said in a note. Evercore ISI said JPMorgan reaffirmed expectations for roughly $95 billion of net interest income excluding markets in 2026, expenses of about $105 billion, and benign card net charge-offs near 3.4%. “The benefits of fiscal stimulus, deregulation and lower rates could help favorable environment persist. … All in, should be a good enough quarter and outlook to keep people in love with JPM and a high enough bar for others to match up to,” Evercore ISI said. — CNBC’s Michael Bloom contributed reporting.
