The CEO and president of JPMorgan Chase, Jamie Dimon, makes a gesture while speaking during the Supervision Hearing of the Senate Banking Committee, Housing and Urban Affairs of the United States in Wall Street companies, in Capitol Hill in Washington, DC
Evelyn Hockstein | Reuters
JPMorgan Chase CEO Jamie Dimon said Friday that he expects estimates so that corporate profits fall in the midst of the uncertainty created by the commercial negotiations of President Donald Trump.
In a call with journalists to discuss the profits of the first quarter, the financial director of JPMorgan, Jeremy Barnum, said he did not see a reason to get the bank’s guide, which depends on the economy and interest rates.
His boss, Dimon, then introjected, talking about the broader corporate world: “He would only add companies, some have tasks of their orientation. I hope to see more of that.”
“Analysts have generally reduced their S&P estimation profits by 5%,” Dimon said. “I think you’ll see that it falls a little more.”
Later, Dimon specified that analysts expected them to cut their estimates of S&P 500 earnings for 5% growth to be stable and then as much as a negative of 5% “likely next month.”
Companies will inform profits over the next weeks, providing managers the opportunity to update investors about their perspective, a period of uncertainty. The markets have caused Trump announced a large set of tariffs on US business partners last week, and have remained volatile as US-China tensions have increased.
Already, companies with consumer exposure, including Walmart” Delta And Frontier Airlines has reigned in parts of its orientation to investors.
Uncertainty is causing customers to withdraw from the acquisition of companies and make investments as they adopt an attitude of waiting and seeing, Dimon and Barnum said.
Anecdotal examples suggest that “people are being cautious,” Dimon said. “You know, people are recovering by making offers, not only large, but intermediate market companies are being very cautious with investment.”
Barnum added that the environment has led companies to eliminate long -term plans in favor of “short -term optimization of supply chains.”
“This level of political uncertainty is difficult to plan in the long term,” said Barnum.
Meanwhile, consumers have hero in the first quarter, and more recently there are signs that they have accelerated leg purchases about concerns that tariffs will make the items more successful, said the CFO.