J.P. Morgan Chase & Co. (NYSE: JPM) was already at highs not seen in a month yesterday and now it appears as though this one is heading even higher on Wednesday. The pre-market trading indication has shares up 2.2% at $36.20 on reports from CNBC that the bank is 65% to 70% out of its massive loss-generating trade under the London Whale.
What is not known is at what price the bank is getting out at. Is it a $2 billion loss still? Or is it a much larger loss of $3 billion, or $4 billion, or is it even a larger loss than that?
It is unlikely that J.P. Morgan will release the tally on its loss until it reports earnings in July. That is one month away or so at this point.
We are now getting back to a critical juncture here for J.P. Morgan holders. The close the day after the London Whale’s huge loss was $36.96 and the stock is now at $36.20. The low put in during early June was $30.83. In short, the largest bank is up over 17% now from its recent lows and it is getting back up to that post-reaction initial share price.
JON C. OGG