J.P. Morgan Adjusts Estimates On CME

J.P. Morgan is adjusting its estimates on CME Group Inc. CME based upon volumes in 1Q which were below estimated. 1Q11 EPS estimates are down $0.04 to $4.23. Says J.P. Morgan, “Slight pull back in volumes vs. expectations is leading to declining estimates. While we expect volatility to fall as global news flow declines, we believe the potential unwind of Quantitative Easing II, greater certainty about SEC/CFTC rules from Dodd/Frank will increase OTC trading volumes and with them listed derivative volumes. If we are right, volumes could be better than expected in 2H11 and CME's stock could work well from here.” J.P. Morgan maintains its Overweight rating and $350 PT on the stock. CME closed Friday at $305.36.