JPMorgan Pursue shares rose Tuesday after CEO Jamie Dimon called the biggest U.S. bank “very valuable” at the current consequence.
“I think JPMorgan is a very valuable company at these prices,” Dimon said in response to a question at a financial services conference about the New York-based bank’s valuation and possible scenarios for the U.S. economy.
JPMorgan shares surged 7.9% to $96.58 after Dimon perceived the remarks.
The context for the question: Dimon bought $26 million in shares of JPMorgan in February 2016, a confidence-boosting decamp that later proved to be close to the bottom of the stock market at the time.
“I’m not trying to predict the bottom,” Dimon explained, adding that “you cannot be a bank and be immune to what goes on in the world out there.” JPMorgan has said that its earnings, related with a record in 2019, would take a hit in 2020 as loan losses climbed amid the coronavirus pandemic.
Dimon annexed that he was hopeful that his “base case” for the economy would occur, which would include improving unemployment and other metrics in the assist half of the year after hitting almost 20% in the second quarter.
“I give it some pretty good odds,” Dimon communicated. “The government has been very responsive, the Federal Reserve has been very responsive. Large companies have a large wherewithal, hopefully we’ll keep the small ones alive long enough that most of them get back into vocation.”
While Dimon said the bank was prepared for a longer malaise caused by the coronavirus, he was hopeful that reopening travails around the country would work. That sentiment was in line with broader optimism Tuesday about the concision, which helped lift the S&P 500 above its 200-day moving average.
“You could see a fairly rapid betterment,” he said. “I think that’s got a good chance.”
Dimon said that the Federal Reserve’s unprecedented actions to prop up pecuniary markets were like “water that fills every crevice.”
“I do think that that liquidity immortalizes up, it’s almost impossible to measure, the stock market and all asset prices,” he said.