Consumer Prices Rise 0.3%; JP Morgan, Wells Fargo Beat Expectations

Arthi Gupta
13 Apr, 2012
New York City

U.S. indexes edged lower after consumer prices rose 0.3% in March. Weak global economic data did not boost investor sentiment. JPMorgan quarterly net fell on 6% rise in revenues and Wells Fargo profit increased 11%.

[R]9:45 AM New York – U.S. indexes edged lower after consumer prices rose 0.3% in March. Weak global economic data did not boost investor sentiment. JPMorgan quarterly net fell on 6% rise in revenues and Wells Fargo profit increased 11%.[/R]

U.S. indexes and European indexes edged lower and market indexes in France and Germany are set to close down for the week. However, Asian markets closed higher.

Weaker than expected Chinese economic growth data added to the caution as Italy is set to face a wave of labor strikes and Spanish banks may seek more capital in the next six months.

Italy’s labor unions are to stage a nationwide protest today against the pension plan laid out by Prime Minister Mario Monti that was part of a $26 billion austerity package passed in January.

The Chinese gross domestic product expanded 8.1% on an annual basis in the first quarter compared to 8.9% rise in the fourth quarter, the National Bureau of Statistics said today. The latest result was the weakest in 11 quarters.

China''s retail sales advanced 14.8% annually to 4.9319 trillion yuan or $783.03 billion in the first quarter, the National Bureau of Statistics said today.

U.S. Consumer Prices Up

Consumer prices in the U.S. rose 0.3% in March compared to the 0.4% increase in February, according to data released by the U.S. Labor Department today.

Energy price increase eased to 0.9% in March, from the 3.2% increase in February.

The core consumer price index, which excludes food and energy prices, edged up 0.2% in March.

TIBCO Acquires LogLogic

TIBCO Software, an infrastructure software maker said it completed the acquisition of privately held LogLogic, Inc., a company which offers scalable log and security management platforms for about $130 million.

Earnings Review

Google Inc. ((GOOG)), the technology company said first quarter revenues soared 24% to $10.65 billion compared to $8.58 billion in the first quarter of 2011. Net income in the quarter surged 61% to $2.89 billion or $8.75 per diluted share compared to net income of $1.80 billion or $5.51 per share for the year-ago quarter.

Infosys Ltd ((INFY)), the India based software services firm reported fourth quarter revenues increased 10.5% to $1.771 billion from $1.602 billion a year ago. Profit for the quarter increased 15.2% to $463 million from $402 million last year. Earnings per American Depository Share grew to 81 cents from 70 cents.

J.B. Hunt Transport Services, Inc. ((JBHT)), the trucking company reported first quarter Revenue increased 17% to $$1.17 billion compared to $1 billion in the prior year. Net income in the quarter climbed 35.4% to $67.7 million or 57 cents per diluted share compared to net income of $50 million or 40 cents per share last year.

JPMorgan Chase & Co. ((JPM)), the financial holding company said first quarter total net revenue, on a reported basis, rose 6% to $26.71 billion, from $25.22 billion in the prior-year quarter. Net income in the quarter decreased 3.6% to $5.4 billion compared to net income of $5.6 billion a year ago. However, earnings per share improved to $1.31 from $1.28 a year ago.

Wells Fargo & Company ((WFC)), the financial services firm reported first quarter total revenue improved 6.4% to $21.64 billion from $20.33 billion in the comparable period last year. Net income in the quarter improved 10.5% to $4.2 billion or 75 cents per diluted share compared to net income of $3.8 billion or.67 cents per share last year.