J.P. Morgan Chase Earnings Down 7.9%

Banking giant still posted 2nd quarter profits beating analysts' expectations.
4:24 | 07/15/14

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Transcript for J.P. Morgan Chase Earnings Down 7.9%
Okay. It's Tuesday July 15 the markets and New York -- open at today's big number seven point 9%. That is how much JPMorgan Chase's earnings are down. Thinking giants still posted second quarter profits beating analysts' expectations hello everyone I'm Michelle Franzen and New York. Here with all the details what is happening with JPMorgan Chase -- Yahoo! finances Shibani Joshi a body good morning thank you for joining. Joining us. Hi -- good morning can you break it down for us earnings again are down for JPMorgan compared to this time last year but they still beat expectations overall. Things are better. And give us an idea why that is. Yeah I united it's all about an expectations game on Wall Street and then most scenarios he would look at a profit falls seven point 9% -- -- say that's not necessarily a positive number. But for Wall Street it is because JPMorgan back in -- had warned that they thought that profit could fall almost. 20% so when you come and then you see only a profit -- -- seven point 9%. Wall Street overall is cheering and JPMorgan shares are looking up this morning because they beat the expectations and that's what that numbers are what with a stark is reacting to him. And should -- they're also very excited also because JPMorgan Chase did this even after. -- expense right. Yeah absolutely you -- you worry about these large one time legal expenses that could come in and undermine. Any of the progress of the company has made but in this case the company was able to you and make it to compensate for that legal expense and still come in better than analysts' expectations so again a win win. All across the board ended and it's very important and that the Wall Street focuses on this because this is the largest bank in terms of number of assets on Wall Street so it has a huge influence. And this is a good sense of what could happen with the trading activity on the street. -- let's talk about that a little bit JPMorgan's trading activity has improved in recent weeks could we see them fall now. And how to these numbers play out of -- markets and what does this mean for main street. He had there's so many things that are asserted in play here I mean what we're looking -- is is almost an ever report card snapshot of activity and in the last three months so attract trading activity has picked -- recently. So past performance is not and indicative. Necessarily indicative of future performance. But we are seeing just things kind of slow -- it is this summer months right now we're also seeing just sort of low volatility of low volatility. Low volume. On Wall Street right now so I'm it's hard to gauge what will happen to the trends overall for the next couple -- months but. So far things are looking pretty dead at -- company CEO will soon undergo treatment for cancer what are we hearing about him at his prognosis. That is what we're waiting for in this morning's earnings call Jamie Dimon is probably the best poster child for a big -- that that could be out there. He is a fixture and and really. As -- -- proponent and and it and -- as stacked US figure if you well. On Wall Street and what he says everyone listens -- whether you're inside -- and JPMorgan are outside so what we need want to hear from him is. In fact. How his health is doing he said -- certain cancer. That it is curable and we -- -- get more details -- when we think he's gonna get back to work there you know the -- just opening this morning how do we expect. Investors to react to this and what else are we watching -- and it looks like it's going to be a flat -- Wall Street this morning and we are in the middle of an earnings -- -- and in this week today. We got JPMorgan we continue to watch what's happening in the financials -- at Goldman Sachs and many others. This is also a very big week for a technology earnings that were going to hear. From Yahoo! as well as Google -- and get accents are market pulse if you well. Of what's happening in the technology industry and that gives us a good sense of whether or not we should be optimistic gore a little bit more pessimistic down with our stock picking as well. Shibani Joshi from Yahoo! finance thank you for joining us. Thank you. Of course can keep up with the latest headlines right here on abcnews.com. You've been watching the big number I'm Michelle Franzen in New York.

This transcript has been automatically generated and may not be 100% accurate.

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