Summary

• U.S. economy still solid, but banking industry turmoil lingers
• JPMorgan benefits from deposit surge, but faces increased costs
• Will tightened lending standards and recession concerns impact growth?

Looks like JPMorgan's got some sweet news for us. Shares jumped 6.1% in premarket trading as CEO Jamie Dimon assured us the U.S. economy is still vibing pretty well. However, he also mentioned those storm clouds we've been eyeing – yeah, the banking industry turmoil – are still lurking out there.

As the biggest U.S. bank, everyone's got their eyes on JPMorgan to see how they've fared after two regional banks went belly up last month. Things are a bit of a mixed bag, though. While they benefited from a deposit surge after those bank runs, they're also facing increased costs as customers chase those high-yielding money market funds.

Deposits flowing through U.S. banks are the hot topic this quarter. Smaller banks took a hit as customers sought the warm embrace of mega-banks like JPMorgan and Bank of America. But, plot twist: deposits might be leaving the regulated banking system entirely in pursuit of higher yields.

Meanwhile, we're all wondering if JPMorgan and its pals are tightening lending standards in anticipation of a U.S. recession. This could throw a wrench in economic growth by making it harder for peeps and businesses to borrow money. Plus, banks are prepping for a slowing economy by setting aside more loan loss provisions.

Wall Street might not be much help this quarter either, with investment banking fees staying low thanks to the hibernating IPO market. Lastly, everyone's waiting to hear Dimon's thoughts on the economy and how the regional banking crisis might evolve. Remember, JPMorgan played a big role in saving First Republic by injecting it with a cool $30 billion in deposits.

WOM Money Picks

Be a part of the winning team | 81% Success Rate.