 "Jamie Dimon Sees S&P 500 Earnings Estimates Contract As Trump Tariffs Force Companies To Withdraw Guidance")
synopsis
Dimon, who has been critical of Trump’s tariffs, said that while some companies have already withdrawn their guidance, he expects to see “more of that” going forward.
JPMorgan Chase & Co. CEO Jamie Dimon sees analysts reducing their S&P 500 earnings estimates from 5% growth territory to a contraction of 5% as soon as “next month” amid growing uncertainty due to President Donald Trump’s tariff policies.
Discussing the bank’s first-quarter earnings with analysts, Dimon observed that analysts have begun slashing their earnings estimates for S&P 500 constituent companies, according to CNBC.
Dimon, who has been critical of Trump’s tariffs, said while some companies have already pulled their guidance, he expects to see “more of that” happening going forward – implying that the uncertain economic environment will push more companies to either refuse to provide guidance or pull their existing ones.
“Analysts have generally reduced their S&P estimate earnings by 5%. I think you’ll see that come down some more,” he said.
Dimon sees S&P 500 earnings estimates to be flat, with analysts eventually projecting a 5% contraction by “probably the next month.”
President Trump, who announced that the ‘Liberation Day’ reciprocal tariffs kicked in on April 2, later extended a temporary pause of 90 days.
However, he maintained his tariff action on China, with the levy on Chinese goods standing at 145% following the most recent hike.
JPMorgan and other banks kicked off first-quarter earnings for banks on Friday amid President Trump’s ongoing tariff war.
JPMorgan reported earnings per share (EPS) of $5.07 on revenue of $45.31 billion, beating Wall Street estimates of $4.65 EPS on revenue of $44.10 billion, according to FinChat data.
However, despite the Q1 beat, Dimon had a somber reading of the economic environment, predicting “considerable turbulence” in the future.
He also pointed to tariffs and high fiscal deficits as negatives.
Amid the growing uncertainty, the SPDR S&P 500 ETF Trust (SPY), which tracks the S&P 500 index, edged up by 0.2% on Friday.
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