Shares of the large U.S. banks rose today along with the broader market, due to higher guidance from JPMorgan Chase (NYSE: JPM) and recent bullish comments from Bank of America (NYSE: BAC) .
Shares of JPMorgan Chase traded roughly 6.7% higher as of 11:20 a.m. ET today, shares of Bank of America were up 6.3%, shares of Citigroup (NYSE: C) traded 6.3% higher, and shares of Wells Fargo (NYSE: WFC) were up 5.3%.
JPMorgan Chase at its investor day this morning raised its guidance for full-year net interest income (NII) -- the profits banks make on loans, securities, and cash after funding those assets -- to $56 billion from $53 billion just a few months ago. The bank expects the Federal Reserve to lift its overnight benchmark lending rate, the federal funds rate, to a range of 2.75% to 3% by the end of the year. Higher rates tend to benefit NII because most banks have more variable-rate assets that see their yields reprice higher with the federal funds rate than liabilities. JPMorgan also said the bank now has a chance of generating a 17% return on tangible common equity, which is the bank's long-term goal that it didn't think it would achieve earlier this year.
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Why Bank of America, Citigroup, JPMorgan Chase, and Wells Fargo Are Rising Today