The stock market was mixed Tuesday morning, but the Dow Jones Industrial Average (DJINDICES:^DJI) had managed a 0.2% gain by 11:05 a.m. EST. An impressive fourth-quarter report from JPMorgan Chase (NYSE:JPM) helped drive the Dow higher.
Microsoft (NASDAQ:MSFT) stock failed to ride the Dow higher, possibly due to news that cloud computing rival Amazon.com (NASDAQ:AMZN) planned to file a motion to block it from working on the massive Joint Enterprise Defense Infrastructure (JEDI) government cloud contract.
Strong results from JPMorgan Chase
Shares of JPMorgan were up 2.1% Tuesday morning after the megabank easily beat analyst expectations with its fourth-quarter results. Total revenue was $28.3 billion, up 8.4% year over year and $610 million higher than the average analyst estimate.
The corporate and investment bank segment was the star of the show, with revenue of $9.5 billion, up 31% year over year. Within that segment, markets and securities services revenue soared 55% to $6.1 billion, driven by 86% growth in fixed-income revenue.
The consumer and community banking segment produced $14 billion of revenue, up 2.5% year over year. Consumer and business banking was down slightly, as was home lending. But growth from card, merchant services, and auto more than offset that weakness.
JPMorgan reported earnings per share of $2.57, up from $1.98 in the prior-year period and $0.22 higher than analysts were expecting. A big jump in net income from the corporate and investment bank segment drove much of the earnings growth.
CEO Jamie Dimon discussed the economic environment in the earnings release: “While we face a continued high level of complex geopolitical issues, global growth stabilized, albeit at a lower level, and resolution of some trade issues helped support client and market activity toward the end of the year. The U.S. consumer continues to be in a