JPMorgan purchased a 10.6% stake in Spanish defense systems producer Indra (IDR.MC), according to the stock exchange regulator on Thursday.

Following the purchase, JPMorgan has become the second-largest stakeholder behind Spanish state holding firm SEPI, which owns a 25.2% interest, according to statistics from LSEG.

(Photo : by Michael M. Santiago/Getty Images)
JPMorgan purchased a 10.6% stake in Spanish defense systems producer Indra (IDR.MC), according to the stock exchange regulator on Thursday.

At current market pricing, JPMorgan's investment in Indra is worth around 268 million euros ($294.10 million).

Escribano, a Spanish aerospace business, said last week that it had boosted its share in the Spanish company to 8% from 3.4% in order to assist to the growth of its defense programs.

Indra's strategic importance has grown since Russia's invasion of Ukraine, as Spain has vowed to raise its defense budget in the next years, as needed by NATO.

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JPMorgan's 2024 S&P 500 Forecast and Earnings Outlook

According to a new forecast from JPMorgan's (JPM) global equities strategy team, the S&P 500 (GSPC) will end 2024 at 4,200, a nearly 8% drop from where it was on Wednesday.

JPMorgan equity strategists, led by Dubravko Lakos-Bujas, conveyed in their 2024 outlook released on Wednesday that, in the absence of rapid Federal Reserve easing, they anticipate a more difficult macroeconomic environment for stocks in the coming year. They noted a potential weakening of consumer trends alongside a reversal in investor positioning and sentiment. The strategists emphasized that equities are currently highly valued, with historically low volatility, and highlighted persistent concerns about elevated geopolitical and political risks.

JPMorgan's forecast is much lower than that of most other Wall Street experts. Even Morgan Stanley's Mike Wilson, a long-time bear, sees the S&P 500 reaching 4,500 by the end of 2024.

Wilson predicted that earnings would continue to rise in 2024, with earnings per share increasing by 7% over the previous year in his 2024 projection. JPMorgan is less bullish on earnings, which are often a major driver of market growth.

JPMorgan expects S&P 500 earnings to rise 2% to 3% year on year, resulting in $225 earnings per share in 2024. Other predictions for increased profits indicate an economy in "early-cycle" or "intra-cycle," according to the business, a reference to the emerging narrative that the Federal Reserve's interest rate hike campaign will conclude without a recession.

However, according to Lakos-Bujas, household savings are declining, borrowing costs for both consumers and corporations have hit a multi-decade high, and global demand is cooling due to disinflation.

While many on Wall Street believe earnings may have turned a corner, JPMorgan sides with economists who have highlighted higher costs of credit will eventually slow the US economy in 2024. A new report from the Federal Reserve released on Wednesday indicated the slowdown may already be underway.

JPMorgan also notes recent commentary from management teams during earnings calls depicted a deteriorating outlook for both consumers and the cost of credit. Per JPMorgan's work, the sentiment around the cost of capital hasn't been this low since the Great Financial Crisis.

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