JPM can handle lower interest rates

Article Excerpt

J.P. MORGAN CHASE & CO. $118 (New York symbol JPM; Income Portfolio, Finance sector; Shares outstanding: 3.2 billion; Market cap: $377.6 billion; Price-to-sales ratio: 3.6; Dividend yield: 3.1%; TSINetwork Rating: Average; www.jpmorganchase.com) is the largest banking firm in the U.S., with total assets of $2.73 trillion as of June 30, 2019. The U.S. Federal Reserve recently cut its benchmark interest rate by 0.25%, to a range of 1.75% to 2.00%. That latest cut is the second for 2019. Lower interest rates will squeeze Morgan’s net interest margin (the spread between the interest it receives on loans less the interest it pays to depositors). However, lower interest rates will help spur loan demand. As well, consumer credit card spending remains strong. Moreover, the bank continues to expand its fee-based businesses such as wealth management. J.P. Morgan is our #1 Income buy for 2019. 2019…

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