JPMorgan's results are above market expectations. Why is the stock falling?

JPMorgan Chase posted a sharp rise in profits in the second quarter, thanks largely to a one-time accounting boost and a recovery on Wall Street. JPM's net profit rose 25% more, a respectable number. However, the market is sending JPM stock lower. Why, you ask?

Net income of$JPM was $18 billion, up 25% from the same period last year, thanks largely to a stock swap with Visa that brought in profits of about $8 billion.

Excluding these one-time gains, JPMorgan made a profit of $13.1 billion in the quarter, actually down 9% from the same period last year.

Investment banking results beat analysts' expectations, with fees from that business up 50% from a year ago and 17% from the prior quarter, to $2.35 billion. M&A revenue rose to $785 million, the highest since the third quarter of 2022.

However, there are new signs that even JPMorgan is struggling to maintain its above-average performance in a time of sustained high interest rates, increased deposit costs and weak loan demand.

A key measure…