JPMorgan reports half-sized earnings

JPMorgan reported that second quarter earnings were down 53 percent versus the same quarter last year.

The banking behemoth posted net income of $2 billion on $19.7 billion in revenue. Net income for the investment banking arm of the firm shrank to one-third of last year’s figure, coming in at $400 million.

The drop in net income was less than expected and revenues were more than expected.  Analysts had lower expectations for JPMorgan and for good reason…broad factors looming over the financials such as tightened credit markets and risky loan portfolios or more specific factors such as losses from the acquisition of Bear Stearns.

JPMorgan’s news should make for a positive market open but there is no telling how long the positive momentum will last… Merrill Lynch and Citigroup are due to report earnings today and tomorrow, respectively.