It was a mixed morning for banks. JPM beat on the top and bottom line due primarily to fixed income, currencies and commodities. But, Jamie Dimon sounded downbeat, referring to “weakening business sentiment and capital expenditures mostly driven by increasingly complex geopolitical risks, including tensions in global trade.”
GS and WFC both missed on the top and bottom line, though WFC managed to beat on a non-GAAP basis due to having retired 9% of its common. Again, the commentary was subdued as both suffered from lower interest rates, an absence of tax breaks and a difficult trading environment.
Futures are actually 10 points higher. The algos are much more interested in the fact that VIX continues to be hammered lower, now off 35% from its Oct 2 highs and testing the top of its red Flag Pattern yet again. Of course, the previous two times this occurred, it bounced nicely and ES tumbled 90 and 150 points. In other words, it’s a good day for a pop-and-drop.
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