| Stocks Logs Weekly Losses As JP Morgan Chase Plummets |
| May-11-2012 |
| Keywords: jp morgan, weekly, losses, stock lower for the week |
The Dow Jones Industrial Average fell 34.4 points. The S&P 500 finished down 4.6 points. Meanwhile the Nasdaq Composite managed to scratch out a fractional gain on the day.
All three major US stock indexes finishing with weekly losses. The Dow suffered the largest declines, dropping 1.7%. The S&P finished off 1.1%, while the Nasdaq Composite ended the week down 0.8%.
Today's mixed results not as bad as many had feared after the recently considered "best in breed" JP Morgan Chase shocked investors and the market with a $2 billion trading loss in its credit portfolio. The loss stemming from hedging the bank's risks, and is expected to cost the firm some $800 million in the second quarter. The unexpected loss tarnishes the reputation of the biggest U.S. bank, and its chief executive, Jamie Dimon.
JP Morgan weighed heavily on the financial sector and the Dow. The bank's stock tumbled more than 9%, costing the blue-chip average 28.6 points on its own. Anxiety over other bank's possibly running into similar losses pushed Bank of America's stock down 1.95%.
Market losses however minimized by better than expected news on consumer confidence. The Reuters and the University of Michigan index of consumer sentiment this month posting a surprise gain, rising to 77.8. That's the highest level on the index in more than four-years.
Adding to the good news, the Labor Department reported prices at the wholesale level dipped 0.2% in April. Excluding the more volatile food and energy components, prices were up 0.2%, which was in line with expectations.
Industrial output in China slowed down to the lowest level since March 2009 last month. That news fueled concern that the world's second-largest economy may be in for a so-called hard landing, which would entail a dramatic slowdown in the pace of expansion.
That news and continued anxiety over political turmoil in Greece caused investors to seek safety in the dollar and U.S. debt. The yield on the 10-year Treasury note finished at a two-month low, under 1.84%. The yield on the benchmark finished lower for an eighth straight week, marking the longest string of weekly declines in more than a decade.
Commodities were broadly lower. Crude oil prices ended down 98-cents, closing at the lowest level on the year, settling at $96.13 |
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Posted by Lou Dobbs Staff at 4:00 PM Email to a friend |
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