J.P. Morgan shares gain the most in a month on Monday, bank to merge middle-market technology and emerging growth commercial banking groups to focus on startups

March 12, 2019 10:43 am

J.P. Morgan Chase & Co (JPM), the largest bank in the United States in terms of assets, announced on Monday the merger of its middle-market technology and emerging growth commercial banking teams, a move that is expected to better position the Wall Street bank to target fast-growing startup companies.

J.P. Morgan Chase shares closed higher for a second consecutive trading session in New York on Monday. It has also been the sharpest daily surge since February 15th. The stock went up 1.30% ($1.34) to $104.35, after touching an intraday high at $104.58, or a price level not seen since March 4th ($105.92).

Shares of J.P. Morgan Chase & Co have risen 6.89% so far in 2019 compared with an 11.03% gain for the benchmark index, S&P 500 (SPX).

In 2018, J.P. Morgan’s stock retreated 8.72%, thus, it again underperformed the S&P 500, which registered a 6.24% loss.

James Millar and Alton McDowell are to head the bank’s technology and disruptive commerce industry group, which will focus on startups, specialized in areas such as semiconductors, software, health and wellness, food, lifestyle as well as pet products.

“In today’s economy, startups are growing at a faster clip and basic banking needs can quickly turn complex,” Melissa Smith, who heads specialized industries for J.P. Morgan’s middle-market group, said in a statement, cited by Reuters.

J.P. Morgan said that the combined group would be used to offer this segment of small to mid-market business entities a variety of services, ranging from management of treasury, payments, credit and financing to advice on mergers and acquisitions.

According to CNN Money, the 25 analysts, offering 12-month forecasts regarding J.P. Morgan Chase & Co’s stock price, have a median target of $115.00, with a high estimate of $140.00 and a low estimate of $85.00. The median estimate represents a 10.21% upside compared to the closing price of $104.35 on March 11th.

The same media also reported that 15 out of 30 surveyed investment analysts had rated J.P. Morgan Chase & Co’s stock as “Hold”, while 13 – as “Buy”. On the other hand, 1 analyst had recommended selling the stock.

Weekly Pivot Levels

By using the traditional method of calculation, the weekly levels of importance for J.P. Morgan Chase & Co (JPM) are presented as follows:

Central Pivot Point – $103.64
R1 – $105.29
R2 – $107.57
R3 – $109.22
R4 – $110.87

S1 – $101.36
S2 – $99.71
S3 – $97.43
S4 – $95.15

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