JPMorgan, Goldman Sachs Earnings Could Move This Dow ETF—Here’s the Portfolio Math
Key takeaways
- Goldman and JPMorgan earnings will be a key driver for DIA’s near‑term performance, with Goldman’s larger weight giving it disproportionate influence.
- Goldman’s 10.23% weight in DIA
- JPM’s 3.84% weight in DIA
- Goldman’s Global Banking & Markets revenue forecast 17% to $11.86 billion
What happened
JPMorgan Chase & Co. (JPM) and Goldman Sachs Group Inc. (GS) will report earnings on Tuesday, with Citigroup and Wells Fargo (WFC) also releasing results. The two banks are the largest holdings in the SPDR Dow Jones Industrial Average ETF Trust (DIA), together making up 14.07% of the fund. Goldman’s 10.23% weight and JPM’s 3.84% weight mean a 5% move in Goldman would add about 0.51 percentage points to DIA’s return, while the same move in JPM would add about 0.19 percentage points.
Why it matters
DIA tracks the Dow, which is price‑weighted, so high‑priced stocks like Goldman and JPM have outsized influence. Earnings from these banks can move DIA significantly, affecting investors who hold the ETF or trade its futures. The banks’ guidance on revenue, costs, and lending outlook will also signal broader…
Short-term and longer-term
Short-term. Day traders should watch the earnings releases for sharp moves in Goldman and JPM.
Longer-term. Over the next few weeks, the banks’ earnings will test the resilience of DIA’s financial exposure.