JP Morgan Announces New Acquisition

December 29, 2020

Recovery Continues

Shares in JP Morgan are trading a little lower pre-market on Tuesday. This is despite the better tone to risk markets this week. Shares in the bank have rallied firmly over recent months, however, trading higher by almost 40% off the September lows.

Boosted by better earnings data over the year since the Q1 dirge, JP Morgan shares have seen an impressive 64% rally off the Q1 lows posted during the height of the pandemic. However, they do still remain around 11% lower on the year.

Acquiring Travel & Loyalty Firm

This week, JP Morgan has been on the wires over news that the firm is further diversifying away from traditional banking with the purchase of leading travel and loyalty brand CxLoyalty Group.

The bank’s acquisition of the group, which has around $3 trillion in assets worldwide will see the bank integrating CxLoyalty’s technology platforms and full-service travel agency, along with its gift card and merchandise business into the bank’s Chase cards program.

Upgraded Travel Experiences For Chase Customers

CxLoyalty is a technology solutions firm that specializes in designing, administering and operating customer loyalty programs. The bank’s clients will continue to use their Chase credit cards. They will eventually have access to upgraded travel experiences when the transition and integration are complete.

Free Reports:

Get our Weekly Commitment of Traders Reports - See where the biggest traders (Hedge Funds and Commercial Hedgers) are positioned in the futures markets on a weekly basis.

Download Our Metatrader 4 Indicators – Put Our Free MetaTrader 4 Custom Indicators on your charts when you join our Weekly Newsletter

Commenting on the deal, Marianne Lake, Head of the bank’s consumer lending program said:

“People across the globe want to vacation and travel again, and hopefully that will become a reality for many in the near future. Acquiring the travel and rewards businesses of cxLoyalty will provide enhanced experiences to our millions of Chase customers once they are ready, comfortable, and confident to travel.”

JP Morgan Shares Continue Higher

Following the gap higher above the 104.13 level, JP Morgan shares have since broken out above the 115.65 level. They are now on course to test the 128.58 level resistance next. The RSI indicator is showing some bearish divergence here which could lead to selling interest on the first test of the level.

However, while price holds above the 115.65 level, the focus remains on the further upside in the short term. Should price reverse below the 115.65 level, the next support to watch is back down at the 104.13 level.

By Orbex