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When you wanna turn our focus back to the markets and the -- industry in particular JPMorgan and Wells Fargo beating the street.
My next -- earnings expectations as well in the second quarter profit jumping 31% for JPMorgan and team percent for Wells Fargo.
A graphic capitals to Obey says he still unimpressed.
He joins us now Dick thank you for joining us why do you call -- a disappointing beat.
Well and in the case of JPMorgan if you take a look at the core earnings of the company.
You take a look at the deal loans go up no they didn't did you do you take a look at the net interest margin.
It went down you would take a look at the trading activity.
It didn't go up so in other words the core factors which -- the earnings of the company actually did not do well in the quarter.
Now that doesn't mean to say that they won't do well in the third in the fourth quarters.
And I think in fact that they will but I was I was not at all impressed with -- the sources of earnings came from.
You can't argue because mortgages did well in this quarter knowing that they're not gonna do well in the third and fourth -- that you're gonna rely on mortgages.
It's inappropriate to drop.
You don't loan loss provision that's almost zero.
When in fact -- allowance is not covering.
You nonperforming assets so no I I don't think this was a good quarter for JPMorgan Phillips meanwhile I don't -- -- which would you rather around.
Well indeed it at this moment wells -- did -- much better job in the quarter wells Fargo's.
Loans did go up a little bit wells Fargo's margins held strong.
They certainly were able to reduce their loan loss provision.
Also in -- like in the case of JPMorgan.
We're expenses went up and expenses went down at Wells Fargo so if you would have put them.
Together on a parallel basis Wells Fargo had a much better quarter.
And JPMorgan did.
Now again I don't wanna freak out of us that stock because of one quarter I think that you know I didn't like JPMorgan's -- I did like wells -- quarter.
But I do want to own both those starts going forward.
And -- -- you know we're just getting started with a big bank earnings we've got 22 out of 81 such reports second quarter next week.
On the list Bank of America American Express Morgan Stanley Goldman Sachs -- Give me a blanket expectation I know they had -- -- -- -- you called it a sloppy second quarter for the financials.
Yeah -- and I think that that JPMorgan was a pretty sloppy second quarter write that I -- earnings that they didn't have from the right sources.
So I think that you know you're gonna see civil activities out of the other -- -- -- I think it.
You know Bank of America should have pretty good numbers because if mortgages are going to be that weren't that strong in the second quarter.
Bank of America will do well as a result of its mortgage operations.
I think you'll see companies like bank of new York and you know State Street -- because asset management did well for JPMorgan.
I think you'll see probably a little less exuberance out of Goldman Sachs and Morgan Stanley because trading was flat.
So I think you know based upon where you think you -- the earnings are coming from.
And matching that -- you know the different companies I would I would like to be positioned to Bank of America I would like to be position.
Right now and -- and -- melon and and State Street.
I would be perhaps a little bit less exuberant.
In looking at Goldman Sachs and Morgan Stanley.
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