JP Morgan Chase & Co (JPM) NewsBite - JP Morgan Profit Drops But Tops Estimates

Posted on Thursday, July 17, 2008 10:15 AM

JP Morgan Chase & Co. (JPM) opened at 38.05. So far today, the stock has hit a low of 38.05 and a high of 40.99. JPM is now trading at 40.21, up 4.28 (11.24%). The stock hit its 52 week high of 50.48 in July and set its 52 week low of 29.24 in July. JPM has been showing signs of weakness for the past year. JPMorgan Chase reported this morning its second quarter profit plunged 53% to $2 billion hurt by mortgage and other loan defaults. The company posted earnings of 54 cents per share on revenue of $18.4 billion, exceeding analysts' forecast for a profit of 44 cents share on $16.6 billion in revenue. Technical indicators for the stock are bearish and steady while S&P gives JPM a very positive 5 STARS (out of 5) strong buy rating. If you’re looking for a hedged play on this stock, consider an August bull-put credit spread below the $32.50 range. JPM stock could fall up to 19.2% before expiration and this position would still be profitable. [RHF - Seven Summits Strategic Investments NewsBite]