The Joplin Globe, Joplin, MO

Business

April 11, 2014

Earnings drop at JPMorgan drags bank stocks lower

NEW YORK — Weaker earnings at JPMorgan Chase are dragging bank stocks lower in morning trading. Technology stocks were still weak a day after the worst rout for the Nasdaq composite index since 2011. Other sectors including health care and energy stocks rose, leaving the broader market mixed.

KEEPING SCORE: The Standard & Poor’s 500 index was little changed at 1,833 as of 11:20 a.m. Eastern time. The Dow Jones industrial average fell 22 points, or 0.1 percent, to 16,147. The Nasdaq composite index rose five points, or 0.1 percent, to 4,058.

BANK EARNINGS: JPMorgan Chase fell $1.63, or 2.8 percent, to $55.77 after the bank missed analysts’ earnings estimates. JPMorgan, the nation’s biggest bank by assets, said its earnings fell 20 percent in the first quarter as revenue from bond trading and mortgage lending fell. Wells Fargo edged up 82 cents, or 1.7 percent, to $48.53 after its earnings beat estimates.

RETAILER ROUT: Gap Stores fell 70 cents, or 2 percent, to $38.59. The San Francisco-based company, which owns the Gap, Banana Republic and Old Navy brands, said revenue for stores open at least a year fell 6 percent.

TECH TURMOIL: Tech stocks were mostly lower, but some big tech names rose a day after the Nasdaq composite plunged 3 percent, its biggest drop since 2011. Facebook climbed 50 cents, or 1 percent, to $59.66. Gilead Sciences rose $2.48 cents, or nearly 4 percent, to $67.96, reversing a big slide in recent days. The biotechnology stock is down 9 percent in 2014.

BRIGHT SPOTS: Ford rose 27 cent, up 1.7 percent, to $15.89 after U.S. safety regulators decided against seeking a recall of Ford F-150 pickup trucks. They had been investigating complaints about reduced power in engines.

OVERSEAS MARKETS: Japan’s Nikkei 225 fell 2.4 percent. Hong Kong’s Hang Seng slipped 0.8 percent and the Shanghai Composite eased 0.2 percent. In Europe, Germany’s DAX fell 1.2 percent and France’s CAC-40 slipped 1 percent. The FTSE 100 index of leading British shares fell 1.1 percent.

BONDS: Treasury prices rose. The yield on the benchmark 10-year Treasury note fell to 2.63 percent from 2.65 percent late Thursday.

 

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