. >>> jpmorgan and wells fargo is beasting estimates.ng with a weaker gdp out of china could mean headwinds. the day after the best two day advance for stocks in twot. google in the spotlight this morning after a mixed earnings report and effective two for one stock split that keeps the company firmly in control of r sergey brin. >> let's start off with jpmorgan. looks like a very strong quarter across the board for jpmorgan. there's a couple of, not complications, but things you need to keep in mind. >> one of them is reversal of loan loss provisions. we've seen this over a number of quarters. it's not real earnings. he didn't say that on the press call we had this morning. he did say about us, at least a year ago it's not real earnings. it helps when you can reverse loan loss reserves back in. it's a sign of improving credit and that was a theme again. those of us in the press had a chance to talk to jamie and doug. and credit is getting better. that was one of the key things that he mentioned in the call. the analysts call is ongoing

life masters is global head of commodities at jpmorgan. ask her if the bull run in her sector is over. "power lunch" is back in two. ♪ ( whirring and crackling sounds ) man: assembly lines that fix themselves. the most innovative companies are doing things they never could before, by building on the cisco intelligent network. >>> welcome back to "power lunch." i'm mary thompson at the realtime exchange. a mixed market ahead of the long holiday weekend and release of the march jobs data. tomorrow the dow and s&p under pressure. the nasdaq showing a little strength. vix slightly higher today. what we're seeing also is a rebound in crude and gold which has been under pressure the last couple of days. and of course strength in the dollar as we see continued fears about -- concerns about debt situation in spain. look at s&p winners and losers about 1:30 eastern bed, bath & beyond. consolation putting pressure on its stock down a whopping 14%. lastly, just want to touch on jc penney because the retailer's makeover continues. stock slightly lower

wells fargo or jpmorgan? we're going to breakdown the charts in talking numbers coming up. >>> plus, the chief strategist of credit soous talkses about why you should go away this year. >> and as we look at the markets of the high as we approach the final stretch. back in a moment [ male announcer ] citi turns 200 this year. so why exactly should that be of any interest to you? well, in that time there've been some good days. and some difficult ones. but, through it all, we've persevered, supporting some of the biggest ideas in modern history. like the transatlantic cable that connected continents. and the panama canal that made our world a smaller place. we supported the marshall plan that helped europe regain its strength. and pioneered the atm, so you can get cash when you want it. it's been our privilege to back ideas like these, and the leaders behind them. so why should our anniversary matter to you? because for 200 years, we've been helping people and their ideas move from ambition to achievement. and

>> i was going to say jpmorgan. i like jpmorgan here.ave a floor in the stock because jamie dimon has said he's going to go out and buy the stock. i'm a buyer of jpmorgan. we bought the stock today and i think it can move. >> grasso, what about you? >> easy money in the u.s. i've said it before. easy money in europe. easy money in china, gdx is where i'm going to stay. >> we'll get clues on easy money. bernanke speaking at the top of the hour. steve liesman will have more on that. jon. >> txt, they have earnings next week. they're buying the april options ahead of earnings. on thebu

that's good for jpmorgan. we think mortgage good for the refinancing market and wells fargo generating one of every three mortgages refinanced in the country, we think they'll have a very good quarter. we think they'll probably be the high bar or high water mark for the quarter. and other banks will have a tough time matching. >> hold them if you got them, buy them if you don't? >> yes. both of those names. we have buys on wells fargo and jpmorgan. we think that relatively speaking they're pretty inexpensive. they're trading at two, three multiple points higher and not generating the same kind of profitability. >> paul, i want to talk credit. credit uptick in q-4, jpmorgan, wells fargo, sort of the best in breed, but are we seeing an overall uptick in credit that's continuing? what's the story? >> that's something we're all going to watch. i don't think investors really care about credit right now. i think it's going to be more of a story in the second half of the year than the first half of the year. we did s

i think jpmorgan will do well.nce they're now just mega financial institutions and not really commercial banks is each quarter shows where that bank is exposed. and this is going to be the quarter of fixed income currencies and commodities. it will also be a great quarter for those banks that do a lot of mortgage origination because refinance activity. and jpmorgan will do well in both of those areas. jpmorgan should have no trouble meeting or beating the estimates. and we're looking forward to that. >> we've seen a run up in the banks obviously since the beginning of will it year. he were so sold off that investors have slowly come back into that sector. so the question that i have for you is when we're looking at pannings s banks on a long term basis, are these long it term buys? >> one of the biggest problems facing banks today is that they have have these held to maturity portfolios with assets that have company lat the ral that's worth less than the loan itself. and at some point, that's going to be a real pro

i actually did a lot of homework on jpmorgan today, and i've got to tell you, not only do i feel jpmorgan'sthis is my charitable trust owns it, you really want to hope the stock goes to 40 because then i've got to tell you, i would be a monster buyer. that's how good the quarter is. people have to lighten up and realize that things are getting better in this country, not worse. i know that's hard to believe. but nobody understands that better than jpmorgan. except for maybe wells fargo which also had a really good quarter. yes, google is okay to buy down here. like i say there's always a bull market somewhere. i promise to try to find it for you right here on "mad money." i'm jim cramer. i'll see you monday!

>> goldman and jpmorgan.e really outperforming over the past five or six quarters. >> you are looking for good things tomorrow. jpmorgan seems to just be liked by so many different people on the street. i don't know if it's the jamie dimon premium built into the stock giving it a lift. what are your expectations? >> in terms of the jamie dimon premium it's not there in our view on earnings. it's traded and the group might be at 90% tangible group but on earnings jpmorgan is one of the cheapest financials out there trading below eight times 13. that's why we like the stock. i think with jpmorgan has in the quarter is solid results albeit probably not as high as expectations. >> let's talk about a bank that's on a four-year high. 2.5% dividend and not a lot of folks talked about it that we liked on this show for a while. they report next week. u.s. bank corps. i know it was downgraded. a lot of folks think valuation is too high. i disagree. what do you think usb? >> we love usb here. this quarter is typically n

you know, one of the trends you saw at jpmorgan was a low interest margin and jpmorgan and wells fargo calling for further margin compression in the second quarter. that's a business the regional banks are better in. something to be mindful of. >> what about consolidation going forward? there's been focus on the expense side of banks. concern it's going to be more profitable for them to be larger. will there be more consolidation in light of these results? >> we do see consolidation as a secular trend. there haven't been many deals in the last years. many many bank acquisitions but in the small and mid-size names not the bigger, we expect to see a fair amount of that. >> and take us through next week. how do we learn from jpmorgan from wells color what you expect to hear going into next week. >> i think you'll see good trading results. maybe better than people thought particularly in the fixed income area. mortgage results probably a little stronger than some expected. you know, loan growth, you know, was a bit soft at both institutions but not uncommon in the first quarter. and then i

, and when can mf global customers expect a resolution of claims against jpmorgan, if they can? >> i believe that we have a solid basis for seeking recovery of some of the funds that were transferred to jpmorgan. as to how that decision ultimately will be made, if we do not reach a consensual conclusion, it will probably have to be resolved by bankruptcy judge john glenn, and how long that will take is difficult to predict. difficult to predict. but we would not be exchanging information and engaging in really confidential discussions about legal arguments unless we thought we had a good prospect of recovering something from them. >> mr. chairman, can i ask mr. freeh one quick question, if i could. mr. freeh, you're the trustee of mf global holdings, is that correct? >> yes, sir. >> so is it your responsibility to protect the corpus or assets of what's left of mf global only? >> yes, mf global and the other debtors that are in chapter 11 of which i'm the trustee, exactly. to get the assets and get them back to the creditors if possible. >> okay. thank you, mr. chairman. >> i wou

i actually did a lot of homework on jpmorgan today, and i've got to tell you, not only do i feel jpmorgan'so hope, this is my charitable trust owns, it you really want to hope the stock goes to 40 because then i've got to tell you, i would be a monster buyer. that's how good the quarter is. people have to lighten up and realize that things are getting better in this country, not worse. i know that's hard to believe. but nobody understands that better

we also have jpmorgan's numbers and a preview of wells fargo.n senator john coker joins us to talk about the state of the economy and jobs. we'll be right back. >> time for today's aflac trivia question. the world's most remotte weather station is located in what country? huh! no! who's gonna help cover the holes in their plans? aflac! quack! like medical bills they don't pay for? aflac! or help pay the mortgage? quack! or child care? quack! aflaaac! and everyday expenses? huh?! blurlbrlblrlbr!!! [ thlurp! ] aflac! [ male announcer ] help your family stay afloat at aflac.com. plegh! only hertz gives you a carfirmation. hey, this is challenger. i'll be waiting for you in stall 5. it confirms your reservation and the location your car is in, the moment you land. it's just another way you'll be traveling at the speed of hertz. ♪ i can do anything ♪ i can do anything today ♪ i can go anywhere ♪ i can go anywhere today ♪ la la la la la la la [ male announcer ] dow solutions help millions of people by helping to make gluten free bread that doesn't tas

ci citi and jpmorgan.

jpmorgan has trading operations. they have nothing to fall back on, for example. >> when you think about the and on this anticipation of a bounce back, what we're seeing is normal. it makes sense. you can't have the type of outperformance, relative outperformance that we had and then expect exceeding, blowout type guidance. as you and i discussed, the mortgage issues that many had hoped, let's go back six months ago, they had hoped that by early 2012 we would not continue to be talking about it and unfortunately we are. >> the mending process is going to take a while. >> the reserves that jpmorgan announced in terms of the potential litigation, that does have ramifications. there will be concern over the weekend in terms of what we see next week. >> spanish yields, here we go again. we've seen this movie already. up to levels -- i don't want to minimize the importance of the story itself. but the safety nets that the european officials have put in place are far better now than they were during the greek crisis. >> yo

jpmorgan would finance the inventory.y would buy crude oil from nigeria or another source, ship it to the u.s., finance the refining process. the jet fuel that resulted would be sold back to delta at effectively wholesale prices and the other products that come out of this particular plant which include kerosene, diesel and other things could be sold by jpmorgan on the open market. hopefully for them at a profit. delta is sort of hedged on this one because they don't have to actually bankroll these processes. one other interesting element is delta has done deals with two major oil companies who would essentially swap them additional jet fuel in exchange for some of the diesel and other things coming out of tray nor that jpmorgan is not selling. >> they've obviously put a lot of thought into this. this wasn't some fly-by-night idea that it was perhaps painted as by some people who didn't like the deal. steve weiss, i mean, you were one of them who said you didn't like this at all. i'm just wondering if jpmorgan is taking o

they are smacking the heck out of wells and jpmorgan. wonder how bad they are going to say citi is. "new york times" doing remarkably good business. the press controls the perception. we are more powerful than i've ever seen. >> banks strong early on. citi gaining momentum. it's up 5.6%. wells fargo up 1.5. jpmorgan is the relative laggard. materials also trading very nicely in today's session. the etf that tracks material stocks up by .09% and we're seeing big gains by the like of u.s. steel. take a look at freeport-mcmoran. at the same time, citi lowering the estimates for copper, which i thought was interesting. they have an outlook piece on metals and they are more bullish. more industrial metals but they are upgrading freeport-mcmoran. >> 12 years ago, 30% used in the united states. building in this country.ome i think chile -- there are refining problems and big chilean companies had to go in and buy copper. i think it's getter rarer and rarer and because the chinese are not using it, it keeps going down. >> they have to buy it els

still long jpmorgan. >> agree with karen completely here.nt, is remember, for the last few years, the banks have been getting crushed, and you have some of the smartest minds in the world, arguably maybe, but trying to figure out how to become more profitable and now with housing at or near a bottom i think it's kind of no longer an argument whether it's there or close to there. it remains to be seen, but trading i think will be a big point and karen brought it up. i think the large banks have figured out a way, whether it's goldman sachs, wells fargo, jpmorgan, morgan stanley, bank of america, they have figured out a way how to be profitable again, and i think they have cut down a lot of overhead. they have cut down a lot of staff, and i think numbers will surprise to the upside here. >> let's stick with banks here and hit options action. got a trade on goldman sachs. >> yeah. i think one of the big issues with goldman sachs is you would like to see an uptick in the revenue side, not just cost-cutting as a revenue mechanism. one way to play

my charitable trust owns jpmorgan, and by the way, i bank at jpmorgan, and i wouldn't be surprised if it goes higher. don't take it all that personally, although i know you will. wells fargo will tell us its cross selling and mortgage businesses are stronger and getting stronger and they will not whine. they will just say hey, listen, we'll deal with any environment. i believe wells fargo with less of a tie to europe, meaning like none, will be viewed as the better buy now that europe's on the front-burner courtesy of slow growth and worries about spain. jpmorgan, morgan stanley, and goldman sachs, but not to domestics like wells. beyond earnings, we have some important chinese inflation data over the weekend. i don't know, both the consumer price index and producer price index come out sunday. the chinese didn't cut rates last week. business was strong. strong enough not to merit it. but i've got to tell you, i believe that if they get inflation under control as represented by these numbers, the tricoms might play their hand and say the rates must come down. we need the people's repu

listen, i got jpmorgan and wells fargo not doing that well. no bank of america.ert in missouri. >> caller: boo-yah, jim. st. louis. >> there you go. >> caller: aci. >> nope, nope. coal is a lower trade. that means it goes lower. colorado. >> caller: hey, jim. how are you? >> real good. how about you? >> caller: good. my question is vodafone. >> nope, nope. we like that much, much lower. i need to go to todd in florida. todd. >> caller: jim, great big university boo-yah from south florida. what do you think about solar wind ticker symbol -- >> all right. people don't understand, solar wind is actually a software company. management tools. a very hot area. i like it. john in new mexico. john. >> caller: boo-yah, cramer. >> boo-yah. >> caller: hey, jim, listen, loose cannon ex-chairman just resigned and the company -- >> sell, sell, sell! >> be more definite than that. curt in indiana. curt. >> caller: hey, jim. i just wanted to see where you think wynn is heading. >> i don't care. let them come up. michigan. >> caller: hi, jim. this is catherine in michigan. listen

that bank's earnings, jpmorgan's that is, $1.31 short. helped as well by continued improvement in credit and low growth in middle market business. a $2.5 billion ad to legal reserves caught a lot of people by surprise. the cfo in an exclusive on cnbc saying it was mostly for mortgage-related issues. >> the $2.5 billion today really reflects in our view based on what we know today a very comprehensive and appropriately conservative view of those exposures. >> he's not expecting further significant additions to legal reserves of the size this year. depending on circumstances, that could change. as for the economy, the company's ceo jamie dimon saying on the call housing close to a bottom. everyone seems to wish that the recovery was stronger. jpmorgan's san francisco based rival wells fargo 75 cents a share two cents ahead of estimates. along with strength in mortgage, benefitted from a cross of various products and posted highest return on assets in four years. like other banks though, wells is expecting low interest rates to keep pressure

equities strategist at jpmorgan. michael azanian is "forbes" magazine executive editor and co-host of the emmy award winning show sports money. and stephen weiss, "fast money" and the terror of the billion dollar mistake. michael, you're probably the least to believe my point. but if the fed stops printing money, the money dollar value goes up. and that's going to push gold and energy prices down. and i think that is just bullish. what is your take? >> i love it if it's true. i'm skeptical we have a more hawkish fed. look at the '80s. >> right. thank you. >> strong king dollar, very strong economy, low inflation. that's very healthy for equities. >> i hate to jump. i just love. this reagan's first term and clinton's second term. strong dollar, falling gold, falling energy prices, fabulous bull markets. nothing lasts forever. but that's what we had. that's what i'm looking for. and steve weiss, my other point is the economy is fine. it's not fabulous, but it's fine. we had the adp employment report. probably pretty go

we saw jpmorgan on friday report $5 billion in revenue out of the thick line. in 1 q. that led to a lot of strong revenue opportunities in fixed income currency and commodities. citi has a strong franchise there and we think that should bring solid results. >> and despite the fact that we saw good results from jpmorgan and as well as wells, we logged the week. if citi beats expectations today or at least performs in line, do you think this could boost the markets? or do you think that negative sentiment from china and what we're worried about in europe still will doctoring drag? >> what i'd say about jpmorgan and wells and how that played out on friday, it seems as though investors were worried about a regulatory requirement forcing second lean mortgages to get reclassified even about if they were current as long as they're behind first notes. will this doesn't have any impact on reserves. >> how relevant a metric for the pnks financials is current period earnings? we know coming into the financial crisis, the earnings numbers gave no indication of what the ear

jpmorgan up nearly 2.5% and citigroup and wells fargo both up better than 2% today. the group as a whole rising 1.6% on the day. we also saw energy stocks rising even though the commodity complex was very much in flux. demand rose, pushing oil up 1.7%. nat gas futures held to below the $2 mark for the first time in over a decade. finally, volatility is still in play. the vix up 22%. hitting 20 for the 12th time this year, so even though stocks rose, the market's not out of the woods just yet. >> maybe so. thanks very much. let's turn to our distinguished investors. joining me, art hogan, managing director at lazard and brian kelly, cofounder of shelter harbor capital and rebecca patterson, j.p. mopmorgan asset management institutional chief marketing strategist and director. now, you have a lot of wonderful -- kate, shallow correction. is it over yet? >> i don't think it's quite over yet. europe is probably more troubled than everyone recognizes. two things that happened after the last couple of months. the rto links the banks and sovereigns. >> sovereign debt again,

jpmorgan came out with a very decent report today, surprise to the up side. banks are overcapitalized, more liquidity than they know what to do with, they're making loans. why is that not good? >> no, i think banks are going to drive the recovery, and i think they should. profits are going to be clearly stronger than people expect, have been stronger, will continue to be stronger because they're playing in this global soup where they're in a very privileged position. i don't want to jum not p on a word you said but i'm going to jump on one word, the monster rally thing. there's clearly a sentiment we've come too far too fast but if the markets had been up 4% in 2011 and they were up 5% through mid-april of 2012 we'd probablying be going, okay, this is a nice healthy economic recovery with a stock market to boot. the fact there was no gains last year and we've had 10% gains this year, you know, it's a calendar defect. >> up 25% since october. >> you can't average the stock market. you have big moves. you've got to sit back and take a break. >> how bearish are

>> i spoke to edith o'brien about the transfers jpmorgan was focused on. she provided me with copies of the transaction report and they matched what jpmorgan described to become and again, my very clear understanding was that if the compliance was limited to those transactions, those transfers, she would be able to sign that. >> did she expressed to you any kind of concern about whether she should sign it or not? >> not as it related to those transfers to the estimate were there any other transfers she was concerned about? >> we didn't discuss others the compliance is that it asks one individual who, you know, probably involve some transfers and not others to say that everything that has ever been done on those accounts to any time in the future was incompliant. the focus was jpmorgan needs comfort right now let's give them comfort on with the need. >> did she ultimately sign any of those letters? >> i understand that she did not. >> do you know why? >> no i don't. >> did you ever talked to mr. corzine about these letters? >> only when he asked me to take

jpmorgan and wells fargo. we saw the space completely battered across the board. part was concerns out of europe. the european banks fell into the close and the u.s. banks take their lead from that sell off. next week you are looking at morgan stanley and that moves into the european banks of late. >> we have wells fargo and jpmorgan and that is as good as it gets. they are down almost 18% off the march highs. it's short that is down this much into events and what's becoming an uncertain market. the implied move is higher and almost a little under 5% going into the event. i'm not looking to make a move just on earnings here. i want to look out to may. moody's told us that they may downgrade this company with the credit rating by three notches that will increase the funding and make them less competitive. i want to look out to may for a low premium structure to have a bearish bet, assuming that the sovereign debt stuff heats up. i want to make a low premium bet that this stock goes unchanged on the year. >> dan is bearish and uses a put fly. we have to open the pla

both jpmorgan chase and wells fargo had better than expected profit and revenue numrs. jpmorgan earning $5.4 billion for the first quarter. wells fargo, 4.3 billion in earnings. earlier in the week, alcoa kicked off with a beat as well. google passed expectations and announced a two for one stock split for google. the markets rebounded on wednesday with fears easing about europe's debt t crisis. on thursday, investors put on their ray caps once again. the dow having the best day in about a month. the markets fell, though, on friday. picture this. facebook is acquiring instagram for $1 billion. ththe company has 13 employees d no earnings. >>> and new rs and trucksold in the u.s. are getting an average of 24 miles a gallon. thaat's the highest ever and up 20% from october off 2007, the first time the study was done. the s&p 500 is up more than 900% for the first quarter of the year. does that mean for a strong year? joining sme abby joseph cohen, goldman sachs senior u.s. investment strtrategist. >> thank you for having me >> not so great a start for the second quarter.

jpmorgan down 3%. now they can make money on the spread as well as buying nondistressed assets from distressed sellers in europe. >> yeah. >> and in the u.s. so i'm positive. >> tom i'm wondering because you make your name, and your fortune for that matter, in real estate. you must have a broad view though about what the equity markets look like. i'm sure you have an interest in some of the equity names for example, not asking you obviously to pick stocks. but when you look at a market that looks the way it does today, putting into context the kind of game we've had, from the beginning of the year, until now, the s&p was up 12% or so in the first quarter how do you feel broadly about the stock market, as you sit here today? >> tremendously bullish. look, from a global perspective, i can't keep a job in one place so i've been forced to kind of move around geographically. scale is everything. many countries are printing money. if you go to the middle east they have the opposite problem we have here. they

jpmorgan chase and all our top sponsors. thank you to our board members. thank you for support. it is going to be a great year ahead and think you for coming out this morning. -- thank you for coming out this morning. [applause]

of jpmorgan chase. said, "i believe in a compassionate, loving god who cares about people. do you believe in such a god?" and he said, "that's a hard question to answer." but what we saw there was an opportunity for people that are customers at jpmorgan chase who've been victimized by jpmorgan chase actually engage the ceo in a real conversation, and put some heat on those folks. we would like to challenge these ceos to come out and see the neighborhoods and the communities that they've devastated. we've got blocks in chicago that have ten bank-owned properties sitting foreclosed, barely boarded up in a neighborhood. that is a moral crisis. like, if that happened in jamie dimon's neighborhooor brn moniha, the head of bank of america's neighborhood. it'd be front-page news. i think we have to look at two things. which banks are too big to fail? because we cannot have another bailout. banks that are too big to fail are too big to exist. but we also got to look at what banks and what corporations are too big to be held accountable. because if they're too big to be held account