JPMorgan Chase (JPM) is causing quite a bit of fallout in the market; the company’s earnings release this morning is arguably holding the entire market back despite some positive news out of Europe.
Banks that issue a lot of credit cards are feeling particular pain, after JP Morgan CFO Doug Braunstein warned on the company’s conference call that the decline in net charge-offs this quarter should continue in the fourth quarter, but could begin to flatten after that.
Braunstein highlighted the “4.34% chargeoff rate in the Chase portfolio. That is an improvement of almost 100 basis points over the last quarter. We also think net charge-offs could modestly improve again next quarter from the current quarter; but after that you shouldn’t expect much additional improvement.”
Capital One Financial (COF) fell 4.1% in midday trading; Discover Financial Services (DFS) was down 4.%, and Alliance Data Systems (ADS) dropped 4%.
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