JPMorgan (JPM) – Get Report shares are getting crushed as large bank executives meet in Washington Wednesday. Its large cap banking peers are getting crushed as well, as the coronavirus will likely get worse before it gets better, putting the possibility of recession in many economies into the minds of investors.

The stock fell 3.4% to $97.13 a share Wednesday. It’s down 18.63% in the past five days, against the S&P 500’s decline of a bit more than 10%. Citigroup (C) – Get Report and Bank of America (BAC) – Get Report are down 22% and 19% in the past five days, respectively.

Here are the headwinds facing JPMorgan, specifically.

Coronavirus

Not only is the coronavirus shutting down manufacturing plants in Asian and Europe and keeping consumers around the globe at home, but a huge fall in oil prices are especially unnerving for JPMorgan investors. 

Oil Demand

Investors expect the bank to make far fewer loans in 2020 than previously estimated, but JPMorgan sees 2.1% of its total loan revenue come in the form of oil and gas loans. Treats the second highest portion out of any large U.S. bank, with Citigroup number one. Oil prices are down 28% in the past five days.





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