The first earnings season of 2025 is officially underway and it started with a BANG! 🎉
JPMorgan Chase $JMP was the first significant report of the season.
This report provides traders and investors with insight into the strength of the consumer, economy, markets, and more.
As the legendary anchorman Ron Burgundy said, "I don't know how to put this, but I'm kind of a big deal."
Here's why JPM is so vital to the market:
JPMorgan and the S&P 500 dance together. Their current 52-week correlation is over 0.9, which is a very strong relationship.
We love to say, "You can't have a bull market without financials," and this chart is precisely why we say it.
The market has made the maxim self-evident.
JPM wasn't the only report that moved markets yesterday.
The Bank of New York Mellon had the best earnings reaction:
*click the image to enlarge it
In addition to the absolute price change, the reaction score was over 6, which means the stock price moved over 6 standard deviations.
It wasn't just about the reported numbers. The market also loved to hear their optimistic outlook for 2025.
Another notable report came from BlackRock, which recently launched the most successful ETF ever. The Bitcoin ETF $IBIT has amassed over $50B in AUM in less than a year.
This is unheard of on Wall Street, and the market has rewarded the stock accordingly. $BLK finished the day with a reaction score of 4.3.
The bottom line is these earnings reports fueled the bull market and left the bears in shambles.
These financial stock charts look like uptrends to us:
Citigroup is the only stock below its prior cycle's peak, and we think it will eventually reclaim that level.
In the meantime, we wouldn't be surprised to see the sellers step in at current prices and force a short-term correction.
We like owning the other 5 stocks because they are above the prior cycle's peaks and in clear uptrends.
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